Pound falls as Iran rejects additional peace talks with US

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Your assist makes all of the distinction. Learn extra The pound sterling skilled a downturn on Monday, influenced by a mix of escalating worldwide tensions and home political pressures. Traders sought the relative security of the US greenback amid heightened friction between the US and Iran over the weekend.

The forex's decline additionally coincided with rising requires the resignation of Prime Minister Sir Keir Starmer. This strain mounted after it emerged that Peter Mandelson, a former US ambassador, had reportedly failed a vetting course of.

Towards the greenback, the pound was final down 0.1 per cent, buying and selling at $1.3503. In the meantime, the euro strengthened in opposition to sterling, gaining 0.1 per cent to achieve 87.10 pence.

The greenback's total power was bolstered as international inventory markets fell and oil costs climbed, following Iran's announcement that it might not take part in a second spherical of peace talks. Tensions have been additional infected by stories of the US seizing an Iranian cargo ship trying to breach its blockade of the Strait of Hormuz

<img src="https://static.independent.co.uk/2026/04/20/00/da202ed93ac692c3431d21bbc8cee850Y29udGVudHNlYXJjaGFwaSwxNzc2NjkyNDkz-2.84300316.jpg" srcset="https://static.independent.co.uk/2026/04/20/00/da202ed93ac692c3431d21bbc8cee850Y29udGVudHNlYXJjaGFwaSwxNzc2NjkyNDkz-2.84300316.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/04/20/00/da202ed93ac692c3431d21bbc8cee850Y29udGVudHNlYXJjaGFwaSwxNzc2NjkyNDkz-2.84300316.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Prime Minister Sir Keir Starmer is set to face scrutiny from MPs on Monday (Tom Nicholson/PA)" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> Prime Minister Sir Keir Starmer is about to face scrutiny from MPs on Monday (Tom Nicholson/PA) (PA Wire) Susannah Streeter, chief funding strategist at Wealth Membership, commented: "Recent worries are percolating concerning the fragility of the Iran ceasefire, sending oil costs larger and preserving buyers on edge."

Domestically, Prime Minister Starmer is below scrutiny forward of a parliamentary tackle, as a scandal unfolds concerning Mandelson, whose proposed appointment because the UK's ambassador to the US failed a vetting course of. The controversy is linked to Mr Mandelson's previous associations with convicted paedophile Jeffrey Epstein.

The Guardian reported final Thursday that Mandelson had failed a safety vetting, intensifying strain on Starmer.

Chris Turner, international head of markets at ING, famous: "This will probably be a troublesome session for PM Starmer and one which is able to lengthen into tomorrow, when the highest civil servant concerned within the approval course of additionally seems at a parliamentary listening to."

He added: "GBP/USD might effectively hand again a giant chunk of current good points this week."

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Regardless of Monday's slip, the pound stays near Friday's two-month excessive of $1.3599, reflecting some market optimism that the worst of the Iran battle could also be over.

Sterling has seen a 2 per cent rise this month, following a 1.9 per cent decline in April, pushed by hopes of a ceasefire deal.

Nevertheless, some buyers concern {that a} potential alternative for Starmer may lead Labour insurance policies additional to the left, probably growing authorities borrowing.