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fxJul 8, 2026, 9:20 AM

GBP/USD Drops to 1.3352 as Geopolitical Tensions Rise

The pound fell to 1.3352 against the dollar on Wednesday as escalating tensions in the Strait of Hormuz and Iranian attacks on facilities in Kuwait and Bahrain weakened risk appetite.

GBPUSD

The British pound declined to 1.3352 against the US dollar on Wednesday, pressured by a broad deterioration in the external environment. Risk aversion intensified after a sharp escalation in geopolitical tensions, including Iranian strikes on facilities in Kuwait and Bahrain and heightened instability in the Strait of Hormuz.

Investors moved away from riskier assets, weighing on sterling amid expectations that the Bank of England may maintain a tighter policy stance. The currency pair remains sensitive to further developments in the Middle East and any shifts in central bank rhetoric.

Source: FXStreet Forex News