Oil and Gold Reignite: U.S. Escalation Reignites Global Market Tensions
Under the weight of geopolitical and trade tensions, oil and gold post strong gains, reflecting deep concerns in global markets.
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Oil
Surges Above $66 as U.S. Vows to Cripple Iranian Crude
Oil prices continued their upward momentum for the second consecutive day, fueled by renewed U.S. pressure on Iranian oil exports.
Brent crude surpassed the $66 per barrel mark, rising by nearly 2%, setting the stage for its first weekly gain this month.
Meanwhile, West Texas Intermediate (WTI) hovered near $63 per barrel.
The American move followed new sanctions on China’s Shandong Shengxing Chemical Co. Ltd.,
accused of purchasing over $1 billion worth of Iranian crude in defiance of existing sanctions.
U.S. Treasury Secretary Scott Bessent affirmed that Washington will intensify its efforts to isolate Iranian oil supplies from the global market.
In response, Tehran voiced strong objections, warning that such policies could derail the nascent nuclear negotiations with the United States,
amid escalating regional and global tensions.
Despite the escalation, some analysts believe the actual impact may be limited,
noting that Tehran and Beijing have built alternative financing and transport networks
that reduce dependence on the international financial system.
Adding further support to prices, U.S. government data revealed a drop in crude inventories at the Cushing,
Oklahoma delivery hub, hitting their lowest seasonal levels since 2008.
Still, gains remain modest when compared to the sharp losses earlier this month,
where prices plunged over $10 per barrel due to concerns over chaotic tariff decisions
by President Donald Trump that cast doubt on global economic growth and energy demand.
Meanwhile, the OPEC+ alliance continues to pressure member countries to adhere to output quotas.
However, recent data shows limited compliance by Iraq and Russia,
while Kazakhstan—historically non-compliant—recorded a more than 40% surge in inventories.
Gold
Shines Amid Economic Uncertainty, Reaches Historic Highs
Amid intensifying trade tensions and unclear U.S. policy signals, gold continues to glitter as investors’ top safe haven.
The precious metal rose by 0.4% to reach $3,357.78 per ounce,
following a dramatic 3.5% leap on Wednesday—its biggest daily gain since March 2023.
The risk-off rally was driven by warnings from Federal Reserve Chair Jerome Powell,
who emphasized that the ongoing trade war is destabilizing markets and threatening economic resilience.
The U.S. dollar’s drop to a six-month low further bolstered gold’s rally.
Since the start of the year, gold has soared by 28%, surpassing the already strong 27% gain recorded in 2024.
Analysts attribute this exceptional performance to a mix of factors, including tariff uncertainty,
slowing economic growth, inflation concerns, and growing expectations for interest rate cuts.
By early morning in Singapore, gold stood at $3,351.79 per ounce, while silver, platinum,
and palladium also posted gains—reflecting sustained investor demand for safe-
haven assets amid global market turbulence.
Oil and Gold Reignite: U.S. Escalation Reignites Global Market Tensions