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fxJul 23, 2026, 3:48 PM

Pound Slides as Gulf War Risk Fuels USD Rally

The British Pound fell over 0.40% against the US Dollar as risk aversion from Middle East tensions and speculation of a broader US campaign against Iran boosted safe-haven demand for the greenback.

GBPUSD

The British Pound dropped more than 0.40% against the US Dollar on Monday, as escalating Middle East conflict and growing speculation of an extended US military campaign against Iran triggered broad risk aversion.

The move weighed on most G8 currencies, with the US Dollar rallying on safe-haven flows. GBP/USD was last seen trading at 1.3313, down from an earlier daily high.

Traders are monitoring geopolitical developments closely, with any further escalation likely to keep pressure on sterling and other risk-sensitive currencies.

Source: FXStreet Forex News