Pound Plunges as Oil Shock Sends Yields Past 5%

The British Pound has weakened against the US Dollar due to rising oil prices and fears of an oil supply shortage, triggering a jump in US Treasury yields.

The escalation of the Middle East conflict has led to a surge in crude oil benchmarks, with Brent and West Texas Intermediate increasing by over 2.40% and 1.10%, respectively.

This has sent bond yields higher, fueled by concerns for a second round of inflation.

The Federal Reserve is expected to increase rates by 25 basis points on September 16, with odds hovering at 95%, according to Prime Terminal.