Pound climbs above $1.34 as Trump delays Iran energy infrastructure strikes
Investing.com -- The British pound rose above $1.34 on Monday, recovering from earlier lows around $1.32, after U.S. President Donald Trump announced a temporary delay of strikes against Iranian infrastructure following what he called "productive" discussions with Tehran.
UK equities and global stocks turned higher following the announcement, while Brent oil futures dropped 9.8% to $101.26 a barrel. U.S. West Texas Intermediate crude futures fell 8.9% to $89.46 a barrel as of 13:10 GMT. Spot gold declined 1.05% to $4,444.17 an ounce, while gold futures dropped 2.5% to $4,492.86/oz.
"Based on the tenor and tone of these in depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the department of war to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings and discussions," Trump wrote in a post on Truth Social.
Separately, Trump said on Fox Business that Iran wants to make a deal badly and it could happen within five days or sooner.
Iran’s Fars News Agency, citing a source, said there are no direct or indirect communications with the United States. A senior security official called Trump’s comments "psychological warfare," acusdcording to Tasnim News Agency.
Last week, UBS said in a note that the British pound is likely to remain under pressure against the U.S. dollar in the near term, lowering its June forecast to 1.34.
UBS forecasts GBP/USD at 1.34 for June, 1.37 for September, and 1.40 for December and March 2027. The firm noted that resistance stands around 1.35, with stronger resistance around recent highs of 1.37-1.38.
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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