Oil prices surge as Iran-U.S. hostilities escalate and Saudi Aramco facilities are hit, while gold retreats on Fed rate-hike expectations.
Published
Oil prices climbed to a six-week high on Monday as renewed hostilities between Iran and the United States pushed markets higher, with reports indicating Saudi Aramco facilities were targeted in the attacks. The escalation marks another flashpoint in tensions between the adversaries, driving crude prices upward amid supply concerns.
Gold prices eased as stronger-than-expected U.S. jobs data bolstered expectations for Federal Reserve interest rate hikes. The jobs market resilience reduced demand for safe-haven assets like gold, which had previously benefited from rate-cut speculation. Market analysts noted the data shifted Fed policy expectations toward a more hawkish stance.
Meanwhile, Qatar has insisted the Strait of Hormuz will remain vital to the global economy despite efforts by Gulf states to develop alternative export routes. Majed Al Ansari, adviser to the Qatari Prime Minister, said the waterway will continue serving as a critical international trade artery even as regional diversification efforts expand.
The diverging trajectories for oil and gold reflect competing market narratives: escalating Middle East tensions supporting energy prices while stronger U.S. economic data pressures precious metals ahead of Federal Reserve policy decisions.
Sources: 1.