Geopolitical tensions in the Middle East are escalating, with U.S. President Donald Trump issuing a 48-hour ultimatum to Iran regarding the reopening of the Strait of Hormuz. Iran’s firm response threatens retaliatory attacks on energy infrastructure across the Persian Gulf, raising alarms in global markets. The International Energy Agency warns that current disruptions could exceed the oil crises of the 1970s, with potential losses of around 11 million barrels per day.

The heightened uncertainty is reflected in market movements, with U.S. and European stock indices indicating declines, while the Japanese market shows mixed sentiment. Precious metals are experiencing significant sell-offs; gold is down 4% to $4,320 per ounce, and silver has dropped 5.6%. This decline correlates with the strengthening U.S. dollar, which typically inversely affects gold prices.

As the situation unfolds, market professionals should closely monitor crude oil prices, which are rising modestly amid these tensions, as they remain a key indicator of inflationary risks stemming from the region.

Source: xtb.com