Global markets saw notable shifts on Thursday as oil prices climbed to multi-month highs and gold surged above the psychologically significant $5,000 per ounce mark, driven largely by escalating geopolitical tensions between the United States and Iran.
Brent crude the international benchmark recently traded near $71.5 per barrel, while U.S. West Texas Intermediate (WTI) crude rose above $66 a barrel, marking one of the strongest rallies in nearly seven months. The uptick comes amid heightened concern that ongoing diplomatic and military frictions could disrupt supply flows, particularly around the strategic Strait of Hormuz, through which roughly 20% of global oil trade passes.
Gold traditionally seen as a safe-haven asset in times of uncertainty responded strongly to the increased risk sentiment. Prices climbed about 2% as investors sought protection against potential market volatility, briefly reclaiming the $5,000 level per troy ounce before stabilizing around that threshold.
Financial analysts say the twin moves in commodities reflect a classic “risk-off” market dynamic: when geopolitical risks rise, traders often rotate away from equities and risk assets into commodity hedges like oil and precious metals. At the same time, expectations for U.S. interest rate cuts have softened, which supports higher gold prices by reducing the opportunity cost of holding non-yielding assets.
Market observers continue to watch diplomatic channels in Geneva, where indirect talks between U.S. and Iranian officials are underway but have yet to bridge key differences. Any escalation or supply threat could sustain upward pressure on energy and metal prices, analysts say.
