{"id":30599,"date":"2026-03-13T21:03:09","date_gmt":"2026-03-13T21:03:09","guid":{"rendered":"https:\/\/www.vtmarkets.com\/in\/uncategorized\/amid-escalating-middle-east-conflict-gbp-usd-trades-around-1-3350-extending-losses-into-a-third-straight-day\/"},"modified":"2026-03-13T21:03:09","modified_gmt":"2026-03-13T21:03:09","slug":"amid-escalating-middle-east-conflict-gbp-usd-trades-around-1-3350-extending-losses-into-a-third-straight-day","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-mena\/live-updates\/amid-escalating-middle-east-conflict-gbp-usd-trades-around-1-3350-extending-losses-into-a-third-straight-day\/","title":{"rendered":"Amid escalating Middle East conflict, GBP\/USD trades around 1.3350, extending losses into a third straight day"},"content":{"rendered":"GBP\/USD is trading near 1.3350 and has fallen for a third day in a row, as the war in the Middle East continues to escalate. The pair has been losing ground during this period.\n\nOn Wednesday, the International Energy Agency agreed to release around 400 million barrels of oil from member countries\u2019 strategic reserves. The move is aimed at reducing energy prices.\n\n

Implied Volatility Outlook<\/h3>\nWith GBP\/USD losing ground, we expect implied volatility to rise significantly in the coming weeks. Traders should consider buying options to position for larger price swings, as the current geopolitical climate makes sharp, unexpected moves more likely. Looking back at the market reaction during the initial conflicts of 2022, the Cboe Volatility Index (VIX) surged over 30, a level we could see tested again.\n\nThe drop in the Pound is largely a story of US Dollar strength, as capital seeks safe havens during global turmoil. The Dollar Index (DXY) has already climbed 1.5% this month, pressuring currencies like the GBP. This trend is likely to continue as long as the conflict escalates, making short positions on GBP\/USD or buying USD call options a common strategy.\n\nFrom our perspective, the UK economy is particularly vulnerable to the ongoing energy shock, which brings back memories of the inflation spike in 2022 and 2023. Back then, UK CPI surged past 10%, crippling consumer spending and forcing the Bank of England into a difficult position. The market now fears a repeat performance, weighing heavily on the Pound\u2019s value against the dollar.\n\nThe release of 400 million barrels from strategic reserves is a major intervention, far exceeding the 180 million barrel release we saw coordinated by the US in 2022. While this may temporarily cap oil prices, it signals a high level of panic among policymakers about a prolonged supply disruption. Traders see this not as a solution, but as confirmation of the crisis’s severity.\n\n

Derivative Strategy Considerations<\/h3>\nGiven these factors, derivative traders may favor buying GBP\/USD put options to bet on further downside while limiting risk. The key data to watch will be weekly energy inventory reports and any shifts in tone from the Federal Reserve versus the Bank of England. A divergence in central bank policy, with the Fed remaining more aggressive on inflation, would accelerate the Pound’s decline.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":"

GBP\/USD hovers near 1.3350, falling third straight day as Middle East tensions rise; IEA releases 400 million barrels.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-30599","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t