Pound Steady as Healey Speech Looms, Oil Prices Surge

The British pound traded steady above $1.35 as investors awaited UK Chancellor John Healey's major speech, which is set to precede next month's budget announcement.

Oil prices rose closer to seven-week highs after the US struck three Iranian oil tankers over the weekend, destroying one and prompting Tehran to threaten a new restricted zone outside the Strait of Hormuz.

The surge in oil prices has driven the global bond selloff, leaving UK gilts particularly vulnerable. This trend is likely to be closely watched by Bank of England policymakers as they assess the strength of the labor market.