Oil prices climbed more than 3% on Monday as continued tensions in the Middle East fueled concerns over energy supplies, following US President Donald Trump’s rejection of an Iranian proposal to de-escalate tensions and reopen the Strait of Hormuz. At the same time, gold prices came under heavy pressure amid renewed inflation concerns.
By 11:14 a.m. Baghdad time, Brent crude futures had gained $3.43, or 3.29%, to reach $107.75 a barrel. US West Texas Intermediate futures rose $2.14, or 2.32%, to $94.55 a barrel.
The oil rally followed Trump’s rejection of an Iranian de-escalation proposal presented by Tehran last week during the UN General Assembly in New York. Iran said the proposal had been delivered to Washington through Qatari intermediaries. Trump, meanwhile, said he expected further talks between the two sides to take place this week.
Gold prices moved sharply lower, with spot gold falling 3% to $4,156.45 an ounce, its lowest level since August 5. US gold futures for December delivery also dropped 3.1% to $4,188.80 an ounce.
The decline in gold came as rising energy prices intensified inflation concerns, potentially reinforcing expectations that US interest rates could remain elevated.
Other precious metals also recorded losses. Spot silver fell 4.8% to $61.17 an ounce, platinum declined 2.4% to $1,735.88, while palladium dropped 2.2% to $1,239.60 an ounce.
