Oil Prices Remain Elevated Amid Middle East Tensions, Precious Metals Decline

PUKMEDIA

Oil and Precious Metals.

Global oil prices remained high on Monday, as ongoing geopolitical tensions in the Middle East continued to unsettle energy markets and raise concerns over potential supply disruptions.

Benchmark Brent crude was trading at approximately $110 to $114 per barrel, while West Texas Intermediate (WTI) hovered between $96 and $100. The sustained rise reflects heightened uncertainty surrounding key shipping routes and regional stability.

Much of the concern centres on the Strait of Hormuz, a vital corridor through which a significant proportion of the world’s oil supply is transported. Any disruption in this narrow waterway could have immediate and far-reaching consequences for global energy markets.

At the same time, precious metals markets have moved in the opposite direction, with prices declining amid shifting investor sentiment and rising interest rate expectations.

Spot gold fell sharply to around $4,350–$4,370 per ounce, marking its lowest level in nearly four months and extending a multi-day losing streak.

Silver also weakened, trading at roughly $75–$80 per ounce, while platinum stood near $2,000–$2,050 per ounce, and palladium hovered between $1,500 and $1,600 per ounce, according to recent market data.

Analysts attribute the decline in precious metals to a stronger US dollar and expectations of higher interest rates, which tend to reduce the appeal of non-yielding assets such as gold.

Despite traditionally acting as safe-haven assets during times of geopolitical stress, gold and silver have come under pressure as investors adjust their positions in response to broader financial conditions.

In recent months, oil prices had been relatively stable, fluctuating within the $90 to $100 range. However, the current situation has pushed prices above the $100 threshold once again, signalling renewed strain in global supply chains.


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