Dollar firms as cracks emerge in peace deal, pound dips on Starmer uncertainty

Global markets faced jitters as U.S.-Iran tensions escalated, impacting oil prices and the Strait of Hormuz. Despite peace talks, threats from President Trump and Tehran's actions cast a shadow. Meanwhile, the British pound weakened amid political uncertainty, and the Japanese yen neared a two-year low, with authorities watching currency movements closely. U.S. Treasury yields also climbed, signaling expectations of further interest rate hikes.