Energy Markets Under the Spotlight: Oil Falls, Gold Rises Amid Escalating Middle East Tensions

As tensions between Iran and Israel escalate, energy and precious metals markets are reacting sharply—oil prices have dropped despite geopolitical fears,
while gold has surged on rising demand for safe-haven assets.

Contents

Oil
Gold

Oil

Drops Despite Turmoil… Markets Bet on Stable Supply

Oil prices fell notably even as tensions intensified in the Middle East, with indications that supplies have not been significantly affected so far.
Brent crude dropped by 1.3% to settle at $73.23 per barrel, while West Texas Intermediate (WTI) declined by 1.7% to fall below $72.
This decline is partly attributed to statements by former U.S. President Donald Trump,
suggesting Iran is open to dialogue—easing fears of a prolonged war that could threaten one-third of global crude production.

Despite Israeli attacks on Iranian energy facilities, including the South Pars gas field,
critical oil export infrastructure has remained intact so far.
Additionally, the vital Strait of Hormuz—through which about one-fifth of global daily oil supplies pass—has not been closed. Nevertheless,
risks surrounding oil shipping have surged, with transport costs from the Middle East to Asia jumping by over 20% amid navigation signal disruptions and growing hesitation from shipowners to enter the region.

Gold

Shines Again Amid Evacuation Calls and Surge in Safe-Haven Demand

On the other hand, gold prices rose in Asian trading following Trump’s call for the immediate evacuation of the Iranian capital,
Tehran—pushing investors toward safe-haven assets.
The precious metal climbed 0.4% to surpass $3,400 per ounce, approaching record highs last seen in April.
This increase comes as part of a six-month winning streak, the longest in over two decades.

Gold’s current appeal is driven not only by geopolitical tensions but also by concerns over U.S. economic policies related to trade and tariffs.
With the U.S. dollar index holding steady and silver prices also rising,
investors appear to be hedging against uncertainty surrounding the Israel-Iran conflict,
particularly as the risk of regional spillover and supply chain disruptions looms.

Energy Markets Under the Spotlight: Oil Falls, Gold Rises

Energy Markets Under the Spotlight: Oil Falls, Gold Rises

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