GBP Falls Despite Easing Safe-Haven Demand Amid Hormuz Diplomacy

The British Pound has been falling despite easing safe-haven demand, causing GBP/USD to trade around 1.3450 during Asian hours on Wednesday.

This is surprising because the US Dollar gained momentum after a rebound in the benchmark 10-year US Treasury yield, which had dipped toward 4.61% on Tuesday due to falling energy prices and cooled inflation fears.

However, this safe-haven demand may be waning as diplomatic efforts to reopen the Strait of Hormuz gain momentum.

The Qatari officials announced an interim proposal, with Washington and Tehran signaling progress toward restoring access to the critical maritime transit route. This follows US President Donald Trump's decision to suspend planned military strikes against Iran.