Pound Sterling Slides vs US Dollar on Israel Iran Attack

June 13, 2025 - Written by Frank Davies

STORY LINK Pound Sterling Slides vs US Dollar on Israel Iran Attack

Risk Appetite Slides as Israel Targets Iran’s Nuclear Facilities, GBP/USD Retreats from 39-Month Highs

Risk conditions dipped sharply during Friday’s Asian session following Israeli attacks on Iran’s nuclear infrastructure.

Oil prices surged over 7.5% with fresh demand for gold and the Swiss franc as an inevitable defensive move.

US equity futures are trading around 1.3% lower and the UK market will open significantly lower.

Risk-related currencies have been sold with the Australian and New Zealand dollars facing losses of around 0.8%.

There are also concerns that there will be further attacks by Israel.

Saxo chief investment strategist Charu Chanana commented; "The geopolitical escalation adds another layer of uncertainty to already fragile sentiment."


The dollar has struggled to gain much defensive support, but the Pound to Dollar (GBP/USD) exchange rate has retreated from 39-month highs above 1.3630 seen during the Asian session to trade around 1.3540.

Israel has attacked crucial nuclear targets, killed two key scientists and targetting key installations.

The Israeli Defence Force (IDF) has also claimed that it has killed senior Islamic Revolutionary Guard leaders.

In response, Iran has launched drones against Israel and ballistic missile strikes would require defensive support from the US with potential UK involvement.

Marekts will be monitoring the extent of US involvement in the attack and the regional reaction. Scheduled peace talks are likely to be cancelled.

Risk appetite is liable to deteriorate if Iran decides to target US regional facilities.

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TAGS: Pound Dollar Forecasts