Sterling slips as Iran/Hormuz jitters lift oil and keep dollar bid ahead of FOMC

Sterling slipped against the dollar as markets priced in renewed geopolitics-driven demand for the greenback and kept an eye on the Federal Reserve’s April 28-29 meeting.

Investing.com reported that GBP/USD and EUR/USD moved lower as Iran’s proposed interim ceasefire was met with skepticism in Washington. The market reaction came alongside higher oil prices, which tend to support the dollar when energy shocks raise inflation concerns and risk sentiment turns cautious.

Al Jazeera reported that Brent crude rose despite Iran’s offer to reopen the Strait of Hormuz if nuclear talks were deferred. A Washington Post/AP report had earlier said Iran was willing to reopen the waterway if the U.S. lifted its blockade and the war ended, highlighting how uncertain the diplomacy remains.

The Fed calendar confirms that the FOMC meeting is underway on April 28-29. That gives currency traders a second near-term driver, with the dollar already benefiting from oil and geopolitical stress before the policy decision.

For sterling, the immediate question is whether the dollar’s support from Iran-related risk fades or holds through the Fed meeting and into month-end trading.