Oil and gold surge as US-Iran tensions escalate in Strait of Hormuz; OPEC cuts demand forecast

Rising oil prices and gold gains follow renewed US-Iran hostilities in the Strait of Hormuz, while OPEC revises its global demand outlook downward.

• Oil prices rose over 2% to a four-week high as the US reimposed its naval blockade on Iran and both sides escalated attacks in the Strait of Hormuz.
• The UAE defense ministry reported that an Indian sailor was killed and eight others injured after Iranian cruise missiles struck two UAE-flagged tankers in Omani waters.
• Gold rose 0.58% to $4,024.07, recovering from a two-week low, as markets awaited US inflation data; Federal Reserve Governor Christopher Waller said the Fed may need to raise rates soon if inflation remains above the 2% target.
• OPEC cut its 2026 global oil demand growth forecast to 780,000 barrels per day, the third consecutive reduction, while raising its 2027 projection to 1.94 million bpd.