FX.co ★ Pound Slips After US Strikes on Iran

The pound slipped to $1.34 as tensions in the Middle East escalated, with renewed US–Iran frictions pushing oil prices higher and underscoring the fragility of recent peace efforts. Brent crude approached $97 a barrel after the US carried out airstrikes on an Iranian military facility and announced sanctions aimed at cutting off Iran’s revenue from ships transiting the Strait of Hormuz. A US official characterised the strikes as defensive and reiterated Washington’s commitment to the month-old ceasefire. Meanwhile, Kuwait reported intercepting hostile drone and missile threats. The flare-up in regional risk prompted traders to increase their bets on further Bank of England rate hikes, despite a run of weak UK data signalling sluggish economic activity.