Oil Prices Rise Amid Middle East Tensions as Gold Falls on Hawkish Fed

Oil prices have risen due to escalating Middle East tensions and disruptions in refining capacity across the region. The Strait of Hormuz remains crucial for oil exports, with millions of barrels still moving through it despite recent attacks. The US is imposing additional sanctions on Iran and securing control of Venezuelan oil reserves.

The technical analysis suggests that crude oil remains in a cautiously bullish structure, with prices holding above both the 50-day and 100-day Simple Moving Averages (SMAs). However, the recent rally has stalled below the 23.6% Fibonacci retracement around $85.

Gold has fallen due to a more hawkish Federal Reserve stance, with rising oil prices adding inflationary pressure. Despite short-term weakness, gold remains up around 10% in August, supported by concerns over US debt and currency devaluation.