Commodity Corner: Oil Rises, Gold Dips Amid Middle East Tensions

Oil markets kept inching up on Monday, driven largely by fresh frictions between the United States and Iran. Vessels navigating the Strait of Hormuz and nearby waters were caught in a series of tit‑for‑tat strikes, reviving worries that the Middle East could face a prolonged supply squeeze.

By 23:54 GMT, Brent crude futures were up 52 cents – a modest 0.54% – trading at $96.80 a barrel. Across the pond, U.S. West Texas Intermediate (WTI) added 66 cents, or 0.72%, to settle around $92.14.

Gold, on the other hand, stayed on the back foot. After a 1% tumble the day before, bullion barely moved, hovering near $4,425 an ounce. The precious metal’s softness was fed by surprisingly strong U.S. payroll numbers – job growth surged in August while the unemployment rate held steady – feeding speculation that the Federal Reserve could hike rates as early as its September meeting.

Silver was almost unchanged at $66.24 an ounce, while platinum slipped a touch and palladium managed a small gain. The U.S. dollar, typically a safe‑haven in such moments, showed signs of strain as investors weighed the twin spectres of higher inflation from Middle‑East instability and a tighter monetary stance.

All told, commodity markets presented a mixed picture on September 7: oil buoyed by geopolitical jitters, gold under pressure from U.S. labour data, and other metals threading a narrow path between the two forces.