GBP Slumps as Oil Fears Fuel Dollar Demand

The Pound Sterling has slipped against the US Dollar as fears of an oil supply shortage send investors fleeing to safe-haven assets. The GBP/USD pair is trading at 1.3487, after reaching a high of 1.3505 earlier in the day.

The escalating Middle East conflict and ongoing tensions are causing concerns about global oil supplies, driving up prices for Brent and West Texas Intermediate (WTI) crude oil. The US Treasury yields have also risen, with the 10-year yield hitting 5.041%, its highest level since 2007.

According to UOB's Quek Ser Leang, the British Pound is expected to face further weakness, potentially falling as low as 1.3410 against the US Dollar. However, a break above 1.3540 could signal that this target is out of reach for now.