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British pound slips below 1.3550 amid renewed Iran shipping tensions
GBP/USD was near 1.3530 as renewed strikes and Strait of Hormuz disruption stoked energy-driven inflation fears, while traders looked ahead to UK GDP and US retail sales.
The British pound weakened against the US dollar, with GBP/USD sliding to around 1.3530 in early Asian trading, according to FXStreet. The move came as renewed conflict and shipping disruptions in the Strait of Hormuz reignited concerns about energy-driven inflation.
FXStreet cited US military strikes against Iran and reports of explosions on Iran’s Qeshm Island, Bandar Abbas, and in Sistan-Baluchestan province. Rising Middle East tensions can boost demand for safe havens such as the US dollar, creating near-term headwinds for the pound.
Market focus also turned to upcoming data, with traders bracing for the UK’s monthly GDP release and US retail sales later on Thursday. On the policy front, traders have increased expectations for Bank of England rate hikes this year due to the expected inflation impact of higher oil prices, with money markets fully pricing a November hike and a second hike by April 2027, Reuters reported.
Latest closeGBP/USD 1.354 ▲1.4%