US Steps Up Pressure on Iran as Gold Rises Amid Lower Fed Rate Hopes

The US government signaled plans to step up economic pressure on Iran, including maintaining a naval blockade and imposing new sanctions. Treasury Secretary Scott Bessent hinted at significant measures against Tehran, stating that the US would introduce economic steps 'that have never been seen on Iran.' The comments come as Defense Secretary Pete Hegseth noted that the US military could keep its naval blockade of Iran going indefinitely by rotating assets.

The developments follow reports indicating a possible replacement of the USS Abraham Lincoln with the USS George Washington in the Middle East. Hegseth also rejected claims about poor living conditions aboard the Abraham Lincoln, but Representative Mike Levin expressed concern over reports from military families describing deteriorating conditions and supply shortages.

Meanwhile, gold prices rose as investors bet on a lower chance of a Federal Reserve rate hike next month. The precious metal traded at around $4,375 per ounce after weaker US inflation data and softer employment figures reduced expectations for further tightening by the Fed.