Sterling Holds Firm as Markets Watch Hormuz Developments

The British pound remains steady against both the euro and the dollar as investors await updates on a possible deal between Iran and Oman that could reopen the Strait of Hormuz.

A deal to reopen the strait, one of the biggest sticking points in efforts to end the US-Iran war, may be close, according to Francesco Pesole, FX strategist at ING.

Pesole believes there is a clear intention from the latest de-escalation not to create prolonged disruption in the Strait of Hormuz, which markets are currently caring about.

The Bank of England kept interest rates on hold last week, flagging that it needed more time for a sense of how much the war in the Middle East would push up inflation.