Oil and Gold Rise Amid US-Iran Diplomatic Deadlock

Crude oil prices rose on Thursday following signs that diplomatic efforts aimed at reaching an agreement regarding the Strait of Hormuz had hit a snag. This cast doubt on the continued growth of energy shipments through the waterway, causing WTI crude to rise 1.6% and settle near $84 per barrel.

The Brent crude contract for October delivery traded near $90 per barrel in light volume, while the more active November contract closed below $89 per barrel. The U.S. President's decision not to return to the terms of the ceasefire agreement reached with Iran in June dashed market hopes that a revenue-sharing agreement between Iran and Oman might soon pave the way for a broader deal with Washington.

Gold prices climbed back above $4,600 per ounce as investors awaited clues on the interest rate outlook from Federal Reserve Chair Warsh's speech on Friday. The gold price fluctuated between gains and losses on Thursday, following a five-day winning streak that ended the previous day. The U.S. economic data released this week showed inflation remaining well above the Federal Reserve's target, raising the likelihood of interest rate hikes.