Pound Falls to 1.3400 vs Dollar on Middle East Tensions

The British pound fell against the U.S. dollar on Tuesday, trading at 1.3400 after a 0.4 percent decline, as escalating tensions in the Middle East drove up oil prices and bolstered the dollar's safe-haven appeal, while softer U.K. economic data added downward pressure on the currency.

The drop reversed some gains from the previous session, when the pair had risen nearly 1 percent to 1.3459 following U.S. President Donald Trump's announcement that he had delayed military strikes on Iran's power plants and energy facilities. Trump described discussions with Iranian officials as productive and aimed at ending hostilities, though Iranian state media dismissed the claims as unfounded. Iran's Foreign Minister Abbas Araghchi reportedly conveyed through back channels that Supreme Leader Mojtaba Khamenei was open to negotiations, according to reports citing regional sources. However, Iranian officials have maintained that the Strait of Hormuz remains open to non-hostile shipping, amid unconfirmed reports of fees imposed on some vessels for safe passage.

Geopolitical risks in the region have pushed Brent crude oil prices above $100 per barrel, heightening inflation concerns globally and...