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15.04.202611:06:04UTC+00Sterling Holds Near Multi-Week High on Peace Hopes

The British pound traded just below $1.36, hovering near its strongest level since mid-February, as markets balanced optimism over US-Iran peace efforts against persistent economic risks. Mediators have reported progress on extending the ceasefire, and US President Donald Trump has hinted at a possible breakthrough. However, uncertainty remains after Washington announced plans to deploy an additional 10,000 troops to the region. With the Strait of Hormuz still closed, elevated energy prices are stoking inflation, prompting markets to price in two Bank of England rate hikes this year. Attention is also focused on a high-stakes meeting in Washington between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent on the sidelines of the IMF–World Bank Spring Meetings. The talks come in the wake of Trump’s latest remarks to Sky News, which have heightened tensions and cast doubt on last year’s trade agreement. On Tuesday, Reeves delivered her most forceful criticism yet of Trump’s handling of the Middle East conflict, warning of its damaging economic spillover.

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