The British pound rose 1,5% to $1.348, nearing its strongest level since late February, after the US and Iran secured a last-minute two-week ceasefire ahead of President Donald Trump’s deadline. The deal, pausing the US-Israel offensive in return for Iran reopening the Strait of Hormuz, has sparked cautious optimism for a short-term easing of Middle East tensions, though deeper conflicts persist. The truce has bolstered risk appetite, with plunging oil and gas prices prompting investors to downgrade Bank of England rate hike expectations. Markets now price in just one rate increase for 2026, down from two before the agreement.