Sterling strengthens against both the US dollar and the euro, with traders increasingly pricing in the possibility that the Bank of England may need to raise interest rates. Both reports attribute the move to shifting market expectations driven by renewed tensions involving Iran. Investors appear to be reacting to the risk of renewed hostilities, which they link to renewed concerns about inflation and the potential need for tighter monetary policy. As a result, betting activity points toward a higher likelihood of rate increases by the Bank of England. The articles present the currency gains as a reflection of updated expectations rather than a specific policy decision, noting that the shift comes from market repricing. Overall, the coverage focuses on how geopolitical developments are influencing inflation-related concerns and, in turn, interest-rate forecasts, which supports the pound’s rise versus major currencies.