Sterling Holds Firm as Iran Offers to Reopen Hormuz

The British pound remained stable after reports emerged that Iran may reopen the Strait of Hormuz within seven days, easing concerns over global oil supply disruptions. The crucial shipping route has strained global oil supplies and posed a challenge for nations reliant on imports.

A sustained resumption of oil flows through the channel could reduce pressure on the Bank of England to hike interest rates, limiting gains in sterling. Sterling was largely unchanged at $1.3366, clawing back after dropping to $1.3327 earlier in the session.

Investor sentiment and expectations for rate hikes continue to impact sterling's performance. Goldman Sachs analysts noted that the bar to out-hawk broader market pricing appears particularly high, suggesting investors are expecting too many rate hikes by the BoE.