Sterling was little changed just above the $1.35 mark as renewed inflation concerns supported expectations for further Bank of England rate hikes. Brent approached $100 a barrel, while UK natural gas prices climbed to their highest level since late 2022 amid renewed US-Iran fighting and reports that Iran and Oman were nearing an agreement to manage shipping through the Strait of Hormuz. Markets are fully pricing in a 25-basis-point BoE rate increase by December and a second hike by March 2027, according to LSEG data. Investors also continued to assess the government’s commitment to fiscal discipline and restoring the UK’s credibility in international bond markets ahead of the Oct. 28 budget, alongside plans to boost regional growth by using public institutions to attract private investment. In the US, markets are awaiting key inflation data later this week, following Friday’s stronger-than-expected jobs report, which pushed the probability of a Fed rate hike next week to nearly 60%.