Sterling Takes Hit as Oil Prices Soar Amid Energy Supply Concerns

The British Pound has dropped to its lowest level in over a month due to concerns about energy supply disruptions and interest rate uncertainty. On Monday, Sterling fell to $1.3474, marking its weakest position since August 7.

The decline was triggered by the strengthening of the dollar against both the euro and yen, although Sterling held steady against the euro. The rise in oil prices has intensified worries about energy supplies, with Brent crude increasing by 3% to $108 per barrel following Houthi strikes on Saudi Arabia.

Diplomatic efforts between Tehran and Gulf nations have also faltered, contributing to the surge in oil prices. Meanwhile, expectations of a Federal Reserve rate hike have bolstered the dollar, as the European Central Bank raised borrowing costs last week.