US Escalates Pressure on Iran as Gold Prices Soar
The US government has signaled plans to intensify economic pressure on Iran, including maintaining a naval blockade and imposing new sanctions. Treasury Secretary Scott Bessent said the US would introduce 'economic measures that have never been seen on Iran', combining broader economic isolation with the continued naval blockade of Iranian ports.
Brent crude rose to about $88.54 a barrel as geopolitical tensions in the Middle East continued to overshadow concerns about weaker global demand. The move followed renewed warnings from the United States that it could maintain its blockade of Iran indefinitely while introducing additional economic measures against Tehran.
Gold headed for a weekly gain after softer US inflation data strengthened expectations that the Federal Reserve will keep interest rates unchanged next month. Spot gold rose 0.5% to around $4,375 per ounce as investors booked profits following a two-month high.