Brent Oil Hits $114: Iran-US Tensions Send Prices Soaring

Claims that Iran targeted a US Navy vessel with a missile in the Strait of Hormuz triggered a sharp rise in Brent crude oil prices. The US Central Command (CENTCOM) denied these allegations, stating that no US ship was hit and that the naval blockade continues. Following these developments, Brent crude surged over 5% yesterday, climbing to $114.5 per barrel. Prices, which had been trading in the $110-112 range during the day, gained momentum in the evening hours on the news. Rising geopolitical risks in the Middle East pushed oil prices higher, while a strengthening dollar created selling pressure in the gold market. Spot gold fell 1.1% on Monday to $4,564.91, while gold futures contracts declined 1.5% to trade at $4,576.81. Concerns that higher energy costs could trigger global inflation have strengthened expectations that central banks will adopt more hawkish monetary policies. This situation puts pressure on gold, which offers no interest yield, while the dollar, strengthened by safe-haven demand, makes gold more expensive for investors holding other currencies. Whether the rally in oil prices will continue depends on the trajectory of tensions between Iran and the US. Markets assess that Brent crude could test the $120 level in the event of a potential supply disruption. This is not investment advice.