Negotiations between the US and Iran intensify as interest rate hike expectations from the Bank of England recede

Golden Ten Data reported on May 7 that as the market expects a possible peace agreement between the United States and Iran, investors have lowered their expectations for rate hikes by the Bank of England. Reports indicate that US-Iran negotiations are ongoing, which may lead to the reopening of the Strait of Hormuz. Affected by this news, Brent crude oil prices fell by 3.5%. According to LSEG data, the market now expects the Bank of England to raise interest rates by a total of 50 basis points by 2026, lower than the 66 basis points priced before this week's US-Iran negotiation news.