The British pound traded above $1.36, near its strongest level since mid-February, as markets continued to price in Bank of England rate hikes this year despite easing oil prices, while remaining concerned over sticky inflation and rising government debt. Brent crude fell for a third straight session after Iran held talks with Oman on reopening the Strait of Hormuz, with Oman’s foreign ministry saying a temporary corridor could be announced soon. Unverified reports also suggested the US and Iran could reach a new ceasefire agreement in the coming days. Markets continue to price at least 25 bps of BoE tightening by year-end, following data showing UK inflation accelerated to 2.9% in July, its highest level since March, with further increases expected toward year-end. Attention will also turn to the government’s first budget under Andy Burnham in October. On Tuesday, Britain unveiled plans to spend GBP 10 billion on lower-cost housing for renters, with a focus on London.