Oil Prices Soar on Strait of Hormuz Tensions as Gold Hits Six-Month High

Crude oil prices have surged this week due to ongoing tensions in the Strait of Hormuz, despite Iran's announcement that it will maintain its blockade until 2029. The price of Brent oil has reached $90 per barrel, while WTI oil has surpassed $84. This marks a significant increase from last week, with oil gaining as much as 12% on a weekly scale and almost 8% compared to the previous week.

The Strait of Hormuz remains officially closed, but transport of commodities through it continues at a reduced volume of around 3 million barrels per day. This is significantly lower than the pre-conflict level of 20 million barrels per day. Analysts warn that further escalation in tensions or a US attack on Iran's energy infrastructure could lead to a permanent breakout above $100 per barrel.

In other markets, gold has reached its highest point since June, with prices testing $4400 per ounce. This upward movement is attributed to changes in sentiment regarding the Federal Reserve, with some experts predicting a reduced likelihood of a rate hike in September. Gold's price is currently above its 50-period average and is approaching its 100-period average.