At the close of the 4/5 trading session, Brent crude prices increased by 5,8% to 114 USD a barrel. US WTI crude added 4,4% to 106 USD. In this morning's 5/5 session, WTI prices are currently down 1%, hovering near 105 USD.

The market rose after Iran attacked multiple vessels in the Strait of Hormuz yesterday, causing a fire at a UAE oil port. President Donald Trump's deployment of the US Navy to clear the shipping lane intensified the conflict, marking the strongest escalation since a ceasefire was announced last month.

Vessels in the Strait of Hormuz on 4/5. Photo: *Reuters*

The UAE accused Iran of launching a new wave of attacks against the country, with one drone causing a fire at the Fujairah oil industrial zone. The US military also stated that it destroyed 6 Iranian boats and intercepted cruise missiles and drones launched by Tehran.

Meanwhile, the Islamic Revolutionary Guard Corps Navy of Iran published a map showing its control extended near Hormuz, encompassing the ports of Fujairah, Khorfakkan, and the coastal area of Umm Al Quwain in the UAE.

"Crude oil will remain above 100 USD and gasoline prices in the US could reach 5 USD a gallon by June, if the parties do not reach an agreement to reopen the Strait of Hormuz", analysts at the consulting firm Euroasia Group commented.

In the precious metals market, spot global gold prices closed the 4/5 session down over 90 USD to 4,521 USD an ounce. This morning's session saw prices continue to fall, currently at 4,518 USD.

The precious metal is under pressure as Middle East tensions bolster the US dollar and prolong inflation risks. A strong US dollar makes gold more expensive for non-US buyers. Meanwhile, rising energy prices due to the conflict accelerate inflation, further strengthening the view that central banks will find it difficult to lower interest rates.

While gold is a traditional hedge against inflation and geopolitical instability, the precious metal becomes less attractive in a high-interest rate environment because it does not yield fixed interest.

"Gold's support level is currently around 4,200 USD, and many factors still 'support' the precious metal in the long term. However, in the short term, instability and potential interest rate hikes could lead some investors to exit the market", commented Bart Melek, a commodity strategist at TD Securities.

By Ha Thu (according to *Reuters*, *Kitco*)