Geopolitical Tensions Send Oil and Gold Prices Soaring Ahead of Key US Inflation Data

Oil and gold prices rose on Wednesday as geopolitical tensions increased ahead of key US inflation data. Markets were concerned about the potential impact on Federal Reserve interest rate policy, with oil climbing to its highest levels since July 31.

The US crude price rose 0.61% to $83.71 a barrel, while Brent crude gained 0.62% to $89.46. Spot gold increased by 0.77% to $4,400.44 an ounce, driven by investors seeking safe-haven assets amid rising geopolitical uncertainty.

Tensions in the Middle East remained high due to ongoing conflict involving Iran. The US and Yemen's Iran-aligned Houthis reported separate attacks on shipping, while Iran maintained its position over the Strait of Hormuz. An attack on an Egyptian-owned ship killed four crew members, marking the first fatalities from a Houthi attack on shipping since the Iran war began on February 28.

The continuing attacks and lack of progress in negotiations kept oil prices elevated, with market participants concerned about potential disruption to energy supplies and shipping. North Korea's ballistic missile launch off its east coast added to geopolitical risks, coming days before major joint military exercises between South Korea and the US.