The US-Iran conflict escalates! The Strait of Hormuz closed again: oil prices break through $90, gold prices fall for the third consecutive time.

Notice that, due to US launching a new round of attacks on Iran, the fragile ceasefire agreement faces greater pressure and may prolong this disruptive Middle East conflict that is impacting global markets, leading to a surge in crude oil prices. After WTI crude oil rose over 2% in the previous trading session, it surged 2.7% to $92.45 per barrel at one point. Brent crude oil closed near $93 per barrel. Following US President Trump's accusation of Iran delaying mid-term peace agreement talks, the US military stated that they launched attacks on "multiple" targets for a second consecutive day. Iran, on the other hand, stated that they would resist any threats. In the early hours of the 11th local time, Iran's armed forces' Hatham Ambia Central Command issued a statement declaring the closure of the Hormuz Strait to all types of vessels, including oil tankers and merchant ships, due to the volatile security situation in the region. Any vessel attempting to pass through the strait would be attacked. Since late February, the closure of this strait has disrupted the supply of crude oil, fuel, and natural gas. US launches new strikes on Iran, oil prices soar Jorge Leon, Director of Geopolitical Analysis at consulting firm ReZeddy Energy, stated, "The next few days will be crucial in determining whether diplomatic means can be reasserted or if the conflict escalates further into a sustained escalation cycle. Oil price fluctuations may remain elevated until there is more concrete evidence that the ceasefire can be maintained." US Central Command stated that they have initiated "additional defensive strikes" in response to Iran's "unjustified and sustained aggression." In retaliation for the attacks on Tuesday by Iran after the helicopter was shot down, Iran carried out retaliatory strikes on US military facilities in Bahrain, Jordan, and Kuwait. Later on Wednesday, Trump posted on social media that US forces had escorted "over 200 merchant ships" through the Hormuz Strait, allowing "over 100 million barrels of oil" to enter the market successfully. He then claimed that the US, not Iran, controls the strait. Some oil has already left the Persian Gulf under cover of darkness, and the spot market also shows signs of some adequate supply. Nevertheless, disruptions in Middle East logistics continue to push up energy prices (including gasoline prices in the US) and raise concerns about slowing economic growth. Additionally, data released by the US government on Wednesday showed that US crude oil inventories decreased by 7.2 million barrels last week, the seventh consecutive week of decline. Supply in the Cushing, Oklahoma area also slightly declined. Gold faces panic selling Meanwhile, gold prices opened lower for the third consecutive day. The latest conflict could prolong this war disrupting global markets and causing inflation concerns. In early trading, spot gold dropped 0.9% to around $4,036 per ounce, following a 4.4% decline in the previous trading session. The recent attacks underscore Trump's growing impatience with both sides failing to reach an agreement. This war, now entering its fourth month, has disrupted the flow of energy through the Hormuz Strait, leading to higher oil prices and prompting central banks around the world to attempt to curb inflation, increasing the likelihood of rate hikes. Data released by the US Bureau of Labor Statistics on Wednesday showed that due to the war pushing up energy prices, US inflation rate in May recorded its fastest pace in over three years, surpassing the wage growth of Americans. The Consumer Price Index (CPI) rose 0.5% month-on-month in April, a 4.2% increase from the previous year, marking the largest surge since early 2023. Currently, the gold price is more than one-fifth lower than the trading price before the outbreak of the Iran war at the end of February. Gold recently fell below the 200-day moving average (a widely followed long-term trend indicator), triggering more selling pressure as institutional investors consider this line as a key level. At the time of writing, spot gold has fallen by 0.9%, at $4,036.66 per ounce. Spot silver has dropped by 1.4% to $62.46 per ounce. Platinum and palladium have also declined.