The UK's pound has remained steady at $1.357, following the longest stretch of gains in a year. This comes amid investor optimism over a resolution to the Iran war, which has also complicated the outlook for UK growth and inflation. The International Monetary Fund (IMF) has reduced its economic growth forecasts by largely due to the war, with Britain expected to grow by only ⁠0.8% in 2026, down from a previous projection of 1.3%. This is the largest downgrade made by the Fund for any Group ​of Seven nation. The UK's economy is heavily dependent on natural gas imports, which have increased by 40% since the war. The IMF has also reduced its forecasts for Britain's economy to just 0.8%, making it the most pessimistic.