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

The US dollar firmed as cracks emerged in the US-Iran peace deal, with Tehran's reported closure of the Strait of Hormuz sharply reducing ship traffic and pushing Brent crude up 1.30 percent to $81.62 a barrel. The pound slipped 0.24 percent to $1.3205 on UK political uncertainty around Prime Minister Starmer's future, while the Japanese yen hovered near a two-year low at 161.53 per dollar with US 2-year Treasury yields rising to 4.2276 percent, their highest since early 2025.