FX.co ★ Pound Steady as US-Iran Talks Stall

The pound hovered around $1.35 as the ongoing US-Iran stalemate and domestic political uncertainty weighed on markets. Tensions escalated after a US official disclosed President Donald Trump’s dissatisfaction with Iran’s latest proposal, which called for postponing nuclear negotiations until the current conflict and shipping disputes are resolved. In the UK, Prime Minister Keir Starmer faces a pivotal vote on Tuesday on whether to investigate his assurances to Parliament regarding the appointment of Peter Mandelson as US ambassador. Although Starmer’s allies remain confident of winning the vote, the row threatens to overshadow next week’s key local elections. Investors are also closely watching the Bank of England’s policy decision on Thursday, with the central bank widely expected to keep interest rates on hold at 3.75% in light of the Middle East crisis. Most analysts anticipate a near-unanimous, or at least strongly majority, vote to maintain the current policy stance.