Pound Sterling Recovers on Major Trump U-turn

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Official White House Photo by Abe McNatt

U.S. President Donald Trump cancelled his strikes on Iran, sending oil prices hurtling lower and helping the pound stage a recovery.

On Truth Social, the President said:

"I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East. Based on the tenor and tone of these in deoth, detailed and constructive conversations, which will continue throught the week, I have instructed the Department of War to postponse and all military strikes against Iranian power plants and energy infrastructure for a five day period."

Oil falls and pound sterling rises against the euro, dollar and the majority of peers as traders sense the end of the Iran conflict is on the cards.

Trump threatened to obliterate Iran's electricity generation capacity unless the Iranian's opnened up the Strait of Hormuz by tonight.

Unless Iran yielded to his demands, the U.S. would have had to significantly escalate.

Trump wasn't willing to escalate, and he has found a reason to call of the strikes.

The message to markets is clear: this thing is going to end soon.

This can allow energy markets to slowly recover and ensure a series of worst-case scenarios won't be inflicted on the British economy.

The pound came under pressure last week as markets fretted about the UK's outlook, judging the economy was more prone to others to another inflation spike.

This is a welcome reprieve.