Pound Holds Steady Amid US-Iran Tensions and Oil Price Surge

The British Pound held steady at below 1.33 against the US Dollar on Wednesday as tensions escalated between the US and Iran, with President Donald Trump warning of further attacks on Iran.

Crude oil prices surged by over 7.8% to $85 per barrel in response to the escalating conflict, prompting traders to focus on monetary policy decisions from major central banks.

The Federal Reserve is expected to hold interest rates unchanged, with odds near 59%, although a 25-basis-point rate hike is increasingly likely at 41%. The Bank of England is also due to make a decision on interest rates in the UK, with traders expecting no change.