Geopolitical risks from US-Iran conflict support oil prices while keeping the British pound subdued near 1.33 USD.
The British pound remained below 1.33 USD on Wednesday as escalating tensions between the US and Iran weighed on risk sentiment. GBP/USD traded near 1.3290, reflecting cautious market positioning amid President Donald Trump’s warnings of further retaliatory strikes against Iran.
Oil prices climbed as investors priced in supply disruption risks from the Middle East conflict. The prior session saw GBP/USD close at 1.3285, with limited movement despite broader geopolitical concerns. Comparable periods of heightened tensions have historically driven safe-haven flows into the USD.
Markets await further developments, with traders monitoring US-Iran rhetoric and potential military actions for directional cues.