Pound Sterling holds firm after US Energy Secretary predicts Iran conflict could conclude in a few weeks
GBP/USD Attempts Recovery Amid Geopolitical Uncertainty
After four consecutive days of declines, GBP/USD is showing slight gains, trading near 1.3260 during Monday's Asian session. The pair, along with other risk-sensitive currencies, received a boost following a report from the Guardian indicating that US Energy Secretary Chris Wright anticipates the US-Israel dispute with Iran may conclude within a few weeks. This development could help restore oil supply and potentially lower energy prices.
Despite this temporary support, the British Pound remains vulnerable due to its sensitivity to rising energy expenses. Market participants are also weighing disappointing UK economic figures, the intensifying conflict in the Middle East, and the possible effects these factors may have on Bank of England policy decisions.
According to the Office for National Statistics (ONS), the UK economy stagnated in January, failing to meet forecasts for 0.2% growth. Service sector activity was unchanged, while production fell by 0.1%. Although the economic outlook remains subdued, soaring energy costs have led investors to anticipate a 25-basis-point interest rate increase by the Bank of England before year-end.
Additionally, GBP/USD could face further declines as the US Dollar strengthens on safe-haven flows driven by persistent Middle East tensions and elevated oil prices. Over the weekend, US military reportedly targeted all installations on Kharg Island, a major Iranian oil export center. Although President Donald Trump clarified that oil infrastructure was not hit, Iran has threatened to retaliate against any US-affiliated oil facilities in the area.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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10:13 AM EDT, 10/08/2026 (MT Newswires) -- Price: 91.10, Change: -2.48, Percent Change: -2.65
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