Oil prices surged strongly in today’s trading (Monday), exceeding the $90 per barrel mark, driven by escalating military confrontations between the United States and Iran and the resulting disruptions to navigation through the Strait of Hormuz, while gold held steady as investors weighed geopolitical risks against growing expectations of a US interest rate hike.

Brent crude rose 3.14% to $90.87 per barrel.

Brent crude recorded a rise of 3.14% to $90.87 per barrel, its highest level since June 11, after achieving weekly gains of 15.9%, while West Texas Intermediate crude rose 2.85% to $84.84 per barrel, its highest level since June 12.

The gains came as the conflict in the Middle East widened, with continued mutual strikes between the United States and Iran for the ninth consecutive day, along with reports of new attacks targeting Kuwait and Bahrain, raising concerns about the security of energy supplies.

Iran’s Revolutionary Guard also reported that two oil tankers were hit by explosions while attempting to cross the Strait of Hormuz, while the UK Maritime Trade Operations reported a ship on fire off the Omani coast, amid ongoing tension in one of the most important waterways through which about one-fifth of global oil trade passes.

Analysts pointed out that continued escalation could lead to further pressure on energy markets, especially given that global inventories have fallen to their lowest levels in nearly five years, and the number of ships transiting the strait has declined compared to previous days.

Gold prices in spot transactions stabilized at $4,018.90 per ounce.

In contrast, gold prices in spot transactions steadied at $4,018.90 per ounce, while US August futures contracts rose 0.1% to $4,023.10.

Although rising geopolitical tensions typically support demand for the precious metal as a safe haven, the increase in oil prices reinforced fears of persistent inflation, raising market expectations that US monetary policy will remain tight for longer.

These expectations increased after comments by Cleveland Federal Reserve President Beth Hammack, who said that raising interest rates may be necessary to control inflation, with markets raising the probability of a rate hike in December to 82%, compared to 73% a week earlier.

Among other precious metals, silver rose 1.7% to $56.87 per ounce, platinum held steady at $1,592.34, while palladium gained 0.1% to $1,249.25.