Report: Pound rises as prospect of interest rate cut dims due to Iran war.

The pound rose as tensions in Iran pushed up oil prices, dampening prospects for further interest rate cuts by the Bank of England this year. Data from the London Stock Exchange Group showed that despite oil prices falling from above $100 per barrel, the currency market reflects little possibility of interest rate cuts this year, while the pre-war market had already priced in expectations of two rate cuts. Matthew Ryan of Ebury said in a report that the market's significant repricing of expectations for the UK base rate compared to the European Central Bank has boosted the pound. "Given the liberalization of the UK energy market, gradual reduction in domestic oil production, and limited reserve capacity, the UK seems particularly vulnerable to the impact of inflation." The pound rose 0.1% to $1.3434. The euro fell 0.1% to 0.8646.