Pound Plummets as Oil Prices Surge and Fed Rate Hike Bets Rise

The British pound plummeted to its lowest level in over a month on Monday as investors sought safe-haven assets amidst rising concerns about global energy supplies.

Oil prices surged by 3% to $108 a barrel after Houthi strikes on Saudi Arabia and the shutdown of the kingdom's main pipeline heightened fears of disruptions to oil shipments through the Strait of Hormuz.

The dollar also strengthened against major currencies, including the euro and yen, as investors bet on a potential interest rate hike by the Federal Reserve on Wednesday.

Rising expectations for a UK rate increase later this year, following last week's European Central Bank decision to raise borrowing costs, further supported the dollar.