Gold prices hit a record high on a rush into safe havens and helped by the weaker dollar
AFP

Oil and gold prices soared as escalating conflict between Israel and Iran rattled global markets and raised fears of a broader geopolitical crisis. Brent crude surged nearly 10%, while WTI crude jumped 7.86% to $73.39 per barrel. Simultaneously, gold prices climbed over 1% to $3,445 per ounce, as investors sought safe-haven assets.

The market turbulence followed Israeli airstrikes on Iranian nuclear facilities in Natanz and other cities including Tehran, Tabriz, and Kermanshah. Israeli Prime Minister Benjamin Netanyahu called the strikes a "targeted military operation" aimed at dismantling Iran's nuclear and ballistic missile programs.

Brent crude neared $78 per barrel during Asian trading, marking one of the sharpest single-day oil price increases in a decade. Analysts cited fears of supply disruptions and Iranian retaliation, especially concerning the Strait of Hormuz—a critical chokepoint for global oil shipments.

Gold prices also responded to the uncertainty. Demand spiked as investors shifted away from riskier assets. U.S. gold futures rose 1.4%, reaching a weekly high, highlighting growing concerns about regional instability.

In Israel, a state of emergency was declared amid fears of Iranian retaliation. Defense Minister Yoav Katz warned citizens of possible missile and drone attacks. Iranian state media confirmed casualties, including senior commanders, and vowed a forceful response. "They will pay a heavy price," warned an Iranian military spokesperson.

Global equity markets also reflected the heightened tensions. European futures such as EuroStoxx and Stoxx 600 declined, and Tokyo's Nikkei 225 index dropped by 1.3%. Investor sentiment remains fragile as the situation unfolds.

With fears of a wider regional conflict, energy traders and world leaders are closely monitoring developments. The potential impact on global oil supplies, regional security, and financial markets has raised the stakes. Diplomatic efforts are now critical to de-escalate tensions and stabilize global markets.

Gold prices Crude oil