07.08.202609:05:44UTC+00Sterling Edges Down

The British pound inched down to around $1.344 on Friday as investors grew increasingly cautious about the outcome of Iran-Oman talks and their potential impact on energy flows through the Strait of Hormuz. While the two countries are reportedly working toward an agreement to secure transit routes via the strategic waterway, no formal deal has yet been announced. Market anxiety over possible supply disruptions was further fueled by Iran’s publication of a restrictive draft plan that could constrain access for US and Israeli vessels and require compensation from countries it deems hostile. Against this backdrop, investors continued to weigh the implications for the global energy outlook and future monetary policy, with oil prices advancing over the past two sessions even though they remain lower on the week. In July, the Bank of England left interest rates on hold, and Governor Andrew Bailey indicated that additional tightening was not currently warranted, maintaining that the disinflation process is still progressing despite persistent external uncertainties.