Crude oil prices climbed for a third consecutive session in volatile trading, as investors balanced cautious optimism over a possible US-Iran agreement with fears of further escalation in the region.
Brent crude rose 1.4% to hover near $111 per barrel, swinging between gains and losses ahead of a critical deadline set by US President Donald Trump for Iran to agree to a peace deal.
Market sentiment remained fragile, with uncertainty surrounding potential supply disruptions and geopolitical tensions limiting strong investor conviction. A key focus continues to be the Strait of Hormuz, a vital route for global oil shipments, as the US insists any agreement must ensure uninterrupted oil flow through the passage.
President Trump indicated that negotiations with Iran were “going well,” but emphasized that reopening the Strait is a non-negotiable condition. He also warned of possible military escalation if Iran fails to comply.
Meanwhile, precious metals declined, with gold falling 0.5% and silver dropping 1.2%, alongside weaker platinum and palladium prices. Despite the dip, early signs of buying interest emerged, as gold-backed ETFs recorded their first inflows since the conflict began.
Frequently Asked Questions
Why are crude oil prices rising?
Oil prices are increasing due to geopolitical tensions between the US and Iran, along with concerns over supply disruptions through the Strait of Hormuz.
What is the significance of the Strait of Hormuz?
It is one of the world’s most important oil transit routes, carrying a large portion of global crude exports. Any disruption can significantly impact oil prices.
What is the deadline mentioned in the news?
The deadline refers to a time set by the US for Iran to agree to a peace deal, which could influence global energy markets.
Why are gold and silver prices falling?
Precious metals are declining as investors shift focus toward geopolitical developments and possibly reduce safe-haven investments amid cautious optimism.
Is there any positive sign for gold investors?
Yes, despite falling prices, there are early signs of dip-buying, as gold-backed ETFs have started seeing inflows again.
