Gold Rally Gains Momentum as Oil Prices Plummet

Oil prices have dropped for the second week in a row due to renewed optimism surrounding U.S.-Iran diplomacy. The Strait of Hormuz is now expected to reopen, easing immediate supply fears and leading Brent crude for October delivery to gain over 4.5% by early Thursday evening.

However, oil prices remain nearly $20/bbl below their July 23 peak above $100/bbl after the collapse of a 60-day ceasefire between the U.S. and Iran.

The International Energy Agency has revised global oil demand in 2026 downwards by roughly 1.1 million barrels per day due to higher oil prices, which have triggered significant pullbacks in fuel consumption across Asian markets.

Meanwhile, OPEC+ recently approved a final quota increase of 188,000 barrels per day for September 2026, marking the sixth straight monthly increase this year and finishing the total unwinding of the 2023 voluntary reductions.