Pound Tumbles as US-Iran Conflict Escalates Oil Prices

The Pound to Dollar exchange rate fell on Thursday as escalating US-Iran conflict soured market mood, prompting investors to favor safe-haven assets.

The US Dollar strengthened as rising tensions in the Middle East prompted a shift towards risk aversion, boosting demand for the 'Greenback'.

Global oil prices reached $100 per barrel, while Yemen's Houthi militia declared a blockade on Saudi Arabian ports, further escalating the conflict.

The Pound faced modest pressure as investors reflected on Andy Burnham's first week as Prime Minister, with sterling having climbed in anticipation of his entry into Downing Street but slipping back this week due to uncertainty over funding for government tax cuts and increased spending commitments.