Pound Rebounds as Oil Prices Plummet Amid Escalation Pause

The Pound Sterling (GBP) rose against the dollar on Monday as a decline in oil prices eased concerns about energy-driven inflation and reduced expectations for further Bank of England tightening.

Brent crude prices plummeted by 9% to $87.84 a barrel after the U.S. and Iran paused strikes over the weekend, boosting hopes of de-escalation.

The BoE is widely expected to leave rates unchanged at 3.75% on Thursday after inflation came in below the central bank's forecasts in June.

However, economists and markets remain divided over the longer-term outlook, with higher energy prices threatening to complicate the inflation picture.