Last Updated on 14/07/2026
- GBP/USD gathers strength to near 1.3360 in Tuesday’s Asian session.
- Renewed US strikes on Iran and fears over Strait of Hormuz shipping might cap the upside for the pair.
- BoE’s Pill said interest rates are likely to rise to keep inflation in check.
The GBP/USD pair remains on the front foot, trading near 1.3360 during Tuesday’s Asian session. Even so, gains in the pair may be restrained as investors monitor mounting geopolitical tensions between the United States and Iran. Market participants are also turning their attention to the release of the US June Consumer Price Index (CPI) later in the day.
According to Reuters, US President Donald Trump announced on Monday that Washington had reinstated a naval blockade on Iran and would keep the Strait of Hormuz open through a fee-based arrangement following renewed missile and drone exchanges. The US military also confirmed fresh strikes against Iranian military facilities, noting that more than 50,000 US troops are currently stationed across the Middle East.
On Tuesday, Iran’s Islamic Revolutionary Guards Corps (IRGC) warned that any cooperation with what it described as the “aggressor enemy” in the Strait of Hormuz would postpone the waterway’s reopening and could trigger a global energy crisis. Heightened fears of a broader US-Iran conflict may continue to support demand for the safe-haven US Dollar (USD), limiting further upside in GBP/USD.
Meanwhile, expectations have grown that the Bank of England (BoE) may need to raise interest rates later this year to contain persistent inflation. BoE Chief Economist Huw Pill stated that tighter monetary policy is likely to be required to prevent inflationary pressures from becoming deeply embedded.
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