Oil Fears Send British Pound Plummeting Against Stronger US Dollar

The British Pound has taken a hit as fears of an oil supply shortage drive demand for the US Dollar, sending the pound's value lower against its American counterpart.

Oil prices have surged due to concerns over a potential conflict in the Middle East, with Brent and West Texas Intermediate rising by over 2.40% and 1.10%, respectively.

This has led to a jump in US Treasury yields, with the 10-year yield reaching 5.041%, a level not seen since 2007, according to Prime Terminal.

The Federal Reserve is expected to raise interest rates by 25 basis points on September 16, with odds at 95%, further boosting the dollar's appeal as a safe-haven asset.