Oil Jumps 4% After Donald Trump Warns Iran; Gold Continues Rally
West Texas Intermediate crude climbed to its highest level in four months, while North Sea Brent rose to levels not seen since July.
Quick overview
- Rising tensions between the U.S. and Iran have led to a surge in gold prices, reaching a new record near $5,600 per ounce.
- Oil prices also increased significantly, with West Texas Intermediate crude climbing nearly 4% amid escalating geopolitical concerns.
- President Trump has threatened military action against Iran, urging for negotiations over its nuclear program.
- The U.S. dollar remains weak, contributing to the strong demand for safe-haven assets like gold and silver.
Rising tensions between the United States and Iran are once again rattling global markets. Gold set a fresh all-time high, driven by strong safe-haven demand and a weaker U.S. dollar.
Gold prices surged again on Thursday, reaching a new record near $5,600 per ounce, while oil prices also advanced after U.S. President Donald Trump threatened a potential military strike against Iran.
Supported by dollar weakness, renewed interest in precious metals—traditionally viewed as safe-haven assets during periods of market uncertainty—also pushed silver briefly to a session high.
At one point during the session, gold jumped more than $300, climbing above $5,595 per ounce after Trump stated that Tehran must negotiate an agreement over its nuclear program, which Western powers believe is aimed at developing a nuclear weapon.
“Let’s hope Iran quickly comes to the table and negotiates a fair and equitable deal — NO NUCLEAR WEAPONS — that is good for all parties. Time is running out, it is truly essential!” the Republican leader wrote on his Truth Social platform.
“The next attack will be much worse! Don’t let that happen again,” he added, referring to U.S. airstrikes carried out in June against several Iranian nuclear facilities. A U.S. naval strike group that Trump described as an “armada,” led by the aircraft carrier USS Abraham Lincoln, is currently operating in Middle Eastern waters.
The U.S. president said he was “ready, willing, and able to carry out the mission quickly, with speed and force, if necessary.”
CNN reported that the administration is considering a strike following the breakdown of nuclear negotiations.
Safe havens and oil rally
On another front, escalating geopolitical tensions also pushed oil prices up nearly 4%. West Texas Intermediate crude climbed to its highest level in four months, while North Sea Brent rose to levels not seen since July, amid growing supply concerns.
In Asian trading, equity markets advanced in Hong Kong, Shanghai, Singapore, and Seoul, while Tokyo finished flat.
The U.S. dollar remained under pressure as well, even after Treasury Secretary Scott Bessent told CNBC that “the United States has always maintained a strong-dollar policy,” a day after Trump appeared to welcome the currency’s recent weakness.
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