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Oil prices expected to rise, gold to fall amid U.S. attacks on Iran

Oil prices surged by $4 per barrel this week following renewed US attacks on Iran and the subsequent closure of the Strait of Hormuz. Brent crude is set to close at around $76 per barrel. Market concerns over continued supply disruptions have overshadowed President Trump’s latest Friday attempt to advance negotiations with Tehran. Meanwhile, Iran released 11 million barrels of crude on Thursday alone, bringing the total to over 60 million barrels since the signing of the Memorandum of Understanding. This development coincides with President Trump’s threat to reimpose a blockade on Iranian oil exports through the Gulf of Oman as the fragile ceasefire begins to break down.

Simultaneously, gold prices fell on Friday, heading toward weekly losses amid rising US-Iran military tensions that have sparked worries about increasing inflation and interest rates. Silver and platinum prices are also projected to decline this week, as oil prices rise and the dollar steadies after last week’s losses.

Spot gold declined 0.6% to $4,101.11 per ounce, while gold futures dropped 0.8% to $4,108.90 per ounce by 04:46 ET (08:46 GMT). Overall, spot gold is down about 1.8% for the week.