The post Pound Sterling weakens as Middle East tensions drive oil surge and USD safe-haven demand appeared on BitcoinEthereumNews.com.

The GBP/USD pair attracts some sellers to around 1.3315 during the early European session on Monday, dragged by a firmer US Dollar (USD). The preliminary readings of Purchasing Managers Index (PMI) from the United Kingdom (UK) and the United States (US) will be released later on Tuesday. Escalating war in the Middle East has pushed Brent crude oil prices above $100 per barrel. This has triggered safe-haven demand for the Greenback and increased inflationary pressure globally. Iranian officials vowed retaliation across the region if US President Donald Trump carries out a threat to bomb Iran’s power plants. This remark came as Trump said Saturday he would order the bombardment if the Strait of Hormuz was not fully open to shipping within 48 hours. The Bank of England (BoE) held rates at 3.75% last week. The UK central bank warned that this “shock to the economy” will likely push UK inflation higher in the short term, even as growth forecasts for 2026 are slashed. Furthermore, disappointing labor market data, including a rise in the unemployment rate, dented traders’ confidence in the GBP The UK government stated that UK Prime Minister Keir Starmer, Bank of England (BoE) Governor Andrew Bailey, and Finance Minister Rachel Reeves are scheduled to attend an emergency meeting on the economic fallout from the war in Iran on Monday. Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and…

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Filed under: News - @ March 23, 2026 6:27 am