Oil extends gains.
Oil prices extended gains in Asian trading on Tuesday as U.S. President Donald Trump threatened further strikes against Iran after fresh hostilities raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz.
As of 01:02 ET (05:02 GMT), Brent Oil Futures expiring in November rose 1.1% to $91.51 per barrel, while West Texas Intermediate (WTI) crude futures climbed 1.4% to $86.99 per barrel.
Both contracts settled nearly 3% higher in the previous session.
The latest escalation came after U.S. forces struck Iranian military targets on Larak Island, ending a weeks-long lull in direct attacks.
Iran subsequently launched missiles at U.S. military facilities in Jordan, prompting Trump to pledge a strong response and raising fears that fighting could further threaten shipping through the strategic waterway.
The Strait of Hormuz remains the market’s central concern, with the passage serving as a critical export route for crude and petroleum products from major Middle Eastern producers.
Bitcoin rises to $79k.
Bitcoin rose on Tuesday, remaining close to recent peaks after top corporate holder Strategy resumed it purchases of the cryptocurrency after two months.
But gains in crypto markets were held back by continued caution over higher interest rates and continued U.S.-Iran tensions.
Bitcoin rose 1.2% to 79,015.3 by 02:13 ET (06:13 GMT) after adding nearly 25% in August on hopes of more progress in U.S. regulation and demand for alternative assets amid turmoil in the bond market.
Uncertainty over U.S. interest rates remained in play, especially after hawkish comments from Federal Reserve Chair Kevin Warsh saw markets ratchet up expectations for a September rate hike.
Warsh had reiterated the Fed’s commitment to its 2% annual inflation target, spurring bets that the central bank will have to raise rates. Recent bond market turmoil also spurred bets on a hike.
Gold steadies after two-day drop.
Gold prices steadied on Monday after falling more than 3.5% over the previous two sessions, as renewed U.S.-Iran strikes raised the risk of higher energy costs and added pressure on the Federal Reserve to keep interest rates elevated.
At 21:22 ET (01:22 GMT), XAU/USD fell 0.1% to $4,444.36 an ounce, while Gold Futures gained 0.3% to $4,493.25. XAG/USD rose 0.2% to $66.67 an ounce, while XPT/USD gained 0.4% to $1,802.60. The US Dollar Index was little changed at 99.46.
Fresh U.S.-Iran strikes revive inflation concerns
Gold’s retreat has come as the U.S. and Iran exchanged strikes for the first time in a month, adding a new layer of uncertainty to energy markets.
U.S. forces struck Iranian rocket launchers on an island in the Strait of Hormuz on Sunday, saying the weapons were being prepared to deploy mines in the strategic waterway. Iran subsequently attacked targets in the United Arab Emirates and Jordan.
The latest strikes underline the continuing standoff between Washington and Tehran after more than six months of conflict. The Strait of Hormuz remains a key point of tension, with the conflict already disrupting global energy flows.
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