Crude oil prices rose above $110 per barrel after U.S. President Donald Trump warned Iran that the country is running out of time.
This surge reflects growing market anxiety over potential supply disruptions in the Strait of Hormuz. As geopolitical tensions escalate, energy markets are pricing in the risk of a blockade or conflict that could sever critical oil export routes.
Brent crude prices advanced past $110 per barrel [1], with some reports indicating the price surged as high as $115 per barrel [6]. West Texas Intermediate (WTI) crude approached $107 per barrel [2], though other data showed it trading at $105.88 per barrel on Thursday night [5].
The price volatility follows renewed pressure from the Trump administration. The president said Iran is running out of time, a statement that heightened expectations of immediate supply disruptions [1, 2].
While energy prices climbed, the precious metals market moved in the opposite direction. Spot gold fell to a six-week low, reaching $4,488.99 per ounce [3]. This represents a 1.1% decline in the price of gold [4].
The shift suggests a divergence in investor behavior, moving away from traditional safe-haven assets like gold and toward energy commodities as the risk of a physical supply shock increases.
U.S. officials have previously rejected proposals from Iran regarding the Strait of Hormuz as diplomatic talks stalled. The current tension centers on the critical waterway, which remains a primary focal point for global oil market stability.
“Brent crude prices advanced past $110 per barrel”
The simultaneous spike in oil and drop in gold indicates that markets are reacting to a specific geopolitical threat to supply rather than a general flight to safety. If the U.S. continues to escalate pressure on Iran without a diplomatic breakthrough, the risk of a disruption in the Strait of Hormuz could sustain high energy prices, potentially fueling global inflation.
