Trump delays strikes on Iran's energy infrastructure, pound rises above 1.34 USD

Investing.com - On Monday, the GBP/USD exchange rate broke above 1.34 USD, rebounding from a low near 1.32 USD in early trading. Earlier, U.S. President Donald Trump announced a temporary delay in strikes on Iran’s infrastructure after what he called “productive” discussions with Tehran.

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Following the announcement, UK and global stock markets rose, while Brent crude futures fell 9.8% to $101.26 per barrel. As of 13:10 GMT, U.S. WTI crude futures dropped 8.9% to $89.46 per barrel. Spot gold declined 1.05% to $4,444.17 per ounce, and gold futures fell 2.5% to $4,492.86 per ounce.

Trump posted on Truth Social, saying: “Based on the tone and spirit of these in-depth, detailed, and constructive discussions, these talks will continue this week. I have instructed the Department of Defense to postpone all military strikes on Iranian power plants and energy infrastructure for five days, depending on the success of ongoing meetings and discussions.”

Additionally, Trump told Fox Business that Iran is very eager to reach an agreement, which could happen within five days or sooner.

Iran’s Fars News Agency quoted a source as saying there is no direct or indirect communication with the U.S… According to Tasnim News Agency, a senior security official described Trump’s remarks as “psychological warfare.”

Last week, UBS stated in a report that the GBP/USD could continue to be under pressure in the short term and lowered its June forecast to 1.34.

UBS forecasts GBP/USD at 1.34 in June, 1.37 in September, and 1.40 in December and March 2027. The firm noted resistance around 1.35, with stronger resistance near the recent high of 1.37-1.38.