Oil Surges Above $90 as Gold Declines Amid Rising Regional Tensions

PUKMEDIA AI

Oil and Precious Metals.

Oil prices climbed sharply on Monday as escalating tensions in the Middle East fuelled concerns over global energy supplies, while gold prices retreated and currency markets reflected growing investor caution.

Brent crude rose by 3.05 per cent, gaining $2.69 to trade at $90.79 per barrel by 23:43 GMT, its highest level since 11 June. The benchmark had already recorded a weekly gain of 15.9 per cent, marking its strongest performance since April.

US West Texas Intermediate (WTI) crude also advanced, rising 2.65 per cent to $84.68 per barrel, its highest level since 12 June. WTI posted a 15.5 per cent gain last week, the largest weekly increase since early March.

In contrast, gold prices moved lower despite the geopolitical uncertainty. Spot gold slipped 0.4 per cent to $4,000.55 per ounce by 00:58 GMT after touching a two-week low on Friday, bringing its weekly loss to 2.5 per cent. US gold futures for August delivery also fell 0.3 per cent to $4,005.90 per ounce.

Asian equity markets traded mixed at the start of a week dominated by earnings reports from major technology companies, with investors closely watching whether the strong momentum surrounding artificial intelligence can be sustained.

Among other precious metals, silver gained 0.9 per cent to $56.42 per ounce, platinum edged up 0.1 per cent to $1,592.97, while palladium added 0.3 per cent to $1,251.74.

The US dollar strengthened against most major currencies in early Asian trading as investors sought safer assets amid rising geopolitical risks and higher oil prices.

The dollar gained 0.1 per cent against the Japanese yen to 162.48, its strongest level since 9 July. The euro slipped 0.1 per cent to $1.1426, while sterling was little changed at $1.3445. The Australian dollar eased 0.1 per cent to $0.6975, and the New Zealand dollar fell 0.2 per cent to $0.5833.

The US dollar index, which tracks the currency against a basket of six major peers, rose 0.1 per cent to 100.84.

In the cryptocurrency market, Bitcoin gained 0.2 per cent to $64,637.89, while Ethereum also rose 0.2 per cent to $1,869.72.

Meanwhile, shipping activity through the Strait of Hormuz remained subdued. Data from the London Stock Exchange Group showed that four vessels passed through the strategic waterway on Sunday, compared with eight the previous day. The figures also indicated that at least three oil product tankers and one very large crude carrier (VLCC) have entered the strait since Friday to load crude oil.

The latest market movements underline investors' concerns that any further escalation in regional tensions could disrupt global energy supplies and increase volatility across commodity and financial markets.


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