Pound Plummets Amid Oil Price Surge and Rate Hike Fears

The British pound has hit its lowest point in over a month, dropping to $1.347 against a strong dollar on Tuesday. This decline comes as oil prices surge, fueled by growing concerns over supply disruptions after Yemen's Iran-backed Houthi forces launched new attacks on Saudi Arabia.

Oil prices have risen over 2% to $108.2 per barrel, prompting worries about global energy inflation. As a net oil importer, the UK is vulnerable to high energy prices, which has spurred investor anxieties about rate hikes.

Investors are bracing for interest rate increases, with the Federal Reserve likely to raise rates and the European Central Bank having recently upped borrowing costs. This has boosted the dollar, further pressuring the pound.