Pound Rises as Hormuz Talks Stall and US Inflation Looms

The British Pound has seen an increase in value against the US Dollar as negotiations between Oman and Iran have continued to stall, leading to rising oil prices. The GBP/USD rose by 0.20% during the North American session, trading at 1.3520 after bouncing off daily lows of 1.3483.

The lack of progress in Hormuz has led money markets to expect a higher chance of tightening by the Federal Reserve towards the end of 2026, with 22 basis points expected compared to 17 basis points previously anticipated.

Meanwhile, the US Dollar Index (DXY) is up 0.13% at 99.73, and oil prices have jumped over 4.50% to $80.69 per barrel, driven by geopolitics and its impact on energy prices.