Oil Falls Over 7% as Gold Gains
Oil prices declined at the start of trading following a period of calm between the United States and Iran, as concerns about escalating the conflict in the region and its impact on global energy supplies persisted. Brent crude dropped by more than 7%, reaching its lowest level below $90 per barrel before trimming its losses and settling near $92. Meanwhile, West Texas Intermediate approached $85. This decline came after the U.S. halted strikes on Iran, a decision made after 13 days of renewed mutual attacks. President Trump expressed readiness for widespread strikes but has yet to make a final decision, while Iran stated it would cease its attacks if U.S. strikes stopped. Despite the setback, oil prices remain over 25% higher since the beginning of the month, driven by fears of escalation in areas like the Red Sea and the potential impact on supplies, along with disruptions in Russian shipments caused by Ukrainian attacks. At the same time, gold prices rose by over 1%, supported by declining oil prices and easing inflation fears. The market is now watching the Federal Reserve meetings, which may keep interest rates unchanged, although there is an increasing chance of a rate hike in September.
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