The British pound edged above $1.34, marking its strongest level since late February and on track for a nearly 1.5% weekly gain against the dollar, supported by optimism over a potential Russia-Ukraine peace deal and a cautious stance ahead of US-Iran ceasefire talks this weekend. Ukraine’s lead negotiator hinted at progress in talks with Russia, raising hopes for a swift end to Europe’s bloodiest conflict since World War II. Meanwhile, US-Iran negotiations are set for Saturday, though tensions remain high as Tehran maintains its Strait of Hormuz blockade, the worst energy disruption in history. President Trump balanced optimism with warnings over Iran’s new shipping fees. On the monetary front, rising oil prices stoked inflation fears, leading markets to price in a more hawkish Bank of England, with traders now expecting at least one BoE rate hike by end-2026.