RABAT / Anadolu

Gold prices fell 1.5 percent to $4,080 per ounce on Monday, affected by renewed military confrontation between the United States and Iran and increased fears of rising inflation levels.

By 10:30 GMT, the price of the yellow metal fell by about 1.5 percent, settling at $4,080 per ounce, according to trading.

The decline came amid additional attacks launched by the U.S. military on Iran.

For days, the United States has been launching attacks on Iran, claiming to retaliate for Tehran's targeting of commercial ships in the Strait of Hormuz.

Tehran responds by bombing what it says are U.S. military facilities in Arab countries, while some of those countries have announced that Iranian attacks resulted in civilian casualties and damaged civilian facilities.

Iran targets any ship attempting to cross the Strait of Hormuz, strategic for global energy supplies, without coordinating with it or when passing in a route other than the one it specifies.

On Monday, Iranian Foreign Ministry spokesman Esmaeil Baqaei said that the memorandum of understanding signed with Washington 'has undoubtedly entered a crisis phase,' amid the mutual attacks.

Baqaei said during a press conference in the capital Tehran that Iran was never the party that initiated breaching its commitments.

The Strait of Hormuz region is witnessing security tensions against the backdrop of the US-Israeli war that started against Iran on February 28, 2026.

On June 18 last, Washington and Tehran signed the memorandum of understanding, which included a ceasefire, to pave the way for a final agreement to end the war.

But U.S. President Donald Trump announced on July 8 that the ceasefire had ended due to renewed escalation, amid global fears of security and economic repercussions.