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Oil and Gold Surge as Israel Strikes Targets in Iran Amid Escalating Geopolitical Tensions

1 month ago

Oil and gold prices experience sharp gains amidst escalating geopolitical tensions triggered by Israel’s strikes on targets in western Iran in response to recent attacks. Of particular concern is Isfahan, a city housing military bases, facilities, and crucially, nuclear sites including the main technology center, although Iran assures the safety of its nuclear facilities.

Brent crude initially climbs above $90 per barrel before moderating around $88.50, while US crude briefly surpasses $86 per barrel. Wheat futures also see a notable increase of 2%, and gold rebounds towards near-record levels. Market sentiment suggests a flight to safety is likely to persist ahead of the weekly closing bell, driven by fears of further escalation over the weekend.

Given the boiling tensions in the Middle East, shorting oil and gold is considered risky, with exposure to these commodities seen as a prudent hedge against the region’s mounting geopolitical risks. Investors are closely monitoring developments in the Middle East, with heightened uncertainty amplifying the appeal of safe-haven assets amidst a volatile geopolitical landscape.

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