- March 9, 2026
- Posted by: EWGFX
- Category: news
GBP/USD depreciates after registering modest gains in the previous session, trading around 1.3300 during the Asian hours on Monday. The pair weakens as the US Dollar (USD) gains on safe-haven demand amid escalating Iran war with no clear resolution in sight.
Mojtaba Khamenei was named Iran’s new supreme leader just over a week after his father, Ayatollah Ali Khamenei, was killed in US-Israeli strikes, signaling that hardliners remain firmly in control of the country. Last week, US President Donald Trump said the appointment would be “unacceptable” and suggested that Washington should have a role in selecting Iran’s next supreme leader.
The US Dollar draws support as surging crude Oil prices, fueled by concerns that a prolonged Middle East conflict could disrupt global energy supplies over the longer term. West Texas Intermediate (WTI) Oil price surges above $111.00 per barrel at the time of writing. President Trump said the increase in oil prices is a “very small price to pay” for defeating Iran and ensuring global peace.
The Greenback also receives additional support as traders revise inflation expectations following the outbreak of hostilities last week, strengthening bets that the Federal Reserve (Fed) could delay interest rate cuts.
Rising energy prices are increasing inflation concerns in the United Kingdom (UK), reducing expectations of a Bank of England (BoE) rate cut this month, with futures markets signaling no further policy changes for the rest of the year.
Meanwhile, UK Prime Minister Keir Starmer reaffirmed his decision not to join the initial US-Israel strikes on Iran, emphasizing diplomacy. Over the weekend, Trump dismissed reports that the UK planned to deploy the aircraft carrier HMS Prince of Wales to the Middle East, calling Britain a “once great ally.”