Trump Rejects Iran Truce Extension, Gold and Oil Prices Soar

President Donald Trump has rejected an extension of the June truce agreement between the US and Iran, potentially weakening prospects for a peace deal. The agreement was set to expire on Monday.

Gold prices rose as investors sought safe-haven assets due to increased tensions in the Middle East. Spot gold increased 0.94% to $4,417.14 an ounce, while US gold futures settled 0.85% higher at $4,475.00.

Oil prices also gained, with Brent crude settling $2.24, or 2.53%, higher at $90.76 a barrel, and West Texas Intermediate gaining $2.18, or 2.65%, to $84.58. The uncertainty surrounding the Strait of Hormuz has raised concerns about global supply disruptions.

Bitcoin recovered towards $64,000 as investors weighed geopolitical tensions and increasingly crowded long positions in derivatives markets. Despite elevated derivatives-market positioning, funding rates reached a 20-month high of 0.022 on August 14, according to CryptoQuant.