GBP Recovers from Lows as Oil Prices Plummet

The Pound Sterling (GBP) has recovered from its three-week lows, rising by 0.07% to $1.3330 against the US dollar on Monday as oil prices dropped sharply.

Brent crude prices plummeted 9% to $87.84 a barrel after the US and Iran paused strikes over the weekend, boosting hopes of de-escalation.

This sharp drop in oil prices has eased concerns about energy-driven inflation and tempered expectations for further Bank of England tightening ahead of this week's policy meeting.

The BoE is widely expected to leave rates unchanged at 3.75% on Thursday after inflation came in below the central bank's forecasts in June, but economists and markets remain divided over the longer-term outlook.