GBP Surpasses Pre-War Levels as US-Iran Ceasefire Eases Geopolitical Tensions

The British pound extended its rally to $1.35305, officially surpassing its pre-war levels recorded in late February. This momentum was supercharged by a historic crash in oil prices, which plunged more than 13% in a single day following the reopening of the Strait of Hormuz. Markets experienced massive moves on Friday as a powerful return of global risk appetite triggered a broad sell-off in the US Dollar (DXY). Domestically, Prime Minister Keir Starmer faces mounting resignation calls over a security vetting controversy, yet currency markets have largely ignored the internal turmoil. Investors are currently prioritizing the deflationary impact of lower energy costs over UK political risks. Market participants remain focused on whether Sterling can maintain these multi-month highs as geopolitical tensions continue to thaw.