Oil Edges Up Amid Geopolitical Tensions as Gold Remains Firm

Oil prices edged up on Tuesday as geopolitical tensions continued to simmer, despite no clear direction emerging from recent developments. A tanker was struck by a projectile off Oman while transiting a US-protected lane, according to UKMTO, but Pakistan's Interior Minister Mohsin Naqvi reported significant progress in talks with Iranian leadership.

The mixed signals kept investors on edge as they weighed the implications of these events for global supply chains and energy markets. Meanwhile, gold prices saw a volatile session, briefly pushing above $4,690 an ounce before reversing sharply to trade below $4,640. The metal's broader rally remains intact, drawing support from renewed fiscal sustainability concerns following the Treasury's bond market intervention.

Stanley Druckenmiller, a prominent investor and mentor to both Treasury Secretary Scott Bessent and Federal Reserve Chair Kevin Warsh, criticized the Treasury's recent moves in an op-ed piece, arguing that they amount to price management rather than genuine liquidity support. His views reflect a broader institutional debate over whether such intervention is sustainable.

In Asia, central banks continued to make headlines. The Reserve Bank of Australia released minutes from its August meeting, confirming the board's decision to hold rates unchanged at 4.35%. Meanwhile, former BOJ board member Seiji Adachi predicted that the BOJ will likely raise rates next month and again as early as January.