At the close of trading on 23/7, prices for the world's two key crude oils increased by 6-7%. Brent crude reached 100,7 USD per barrel, marking the first time it surpassed the 100 USD threshold since 26/5. Meanwhile, US WTI crude touched 92 USD.

This month, crude oil prices have surged over 30% as tensions in the Middle East rapidly escalated. Prices jumped following news of attacks on oil tankers in the Red Sea and US President Donald Trump's statement that he would launch an "unprecedented large-scale attack" on Iran.

The Iran-backed Houthi armed group has begun attacking Saudi ships in the Red Sea, heightening tensions along a crucial oil shipping route and further destabilizing the global energy market.

President Trump warned that if the Houthi continued to attack vessels in the Red Sea, the US would hold Iran responsible. According to him, the Yemeni armed group is a proxy force for Tehran, stating that "heavy military sanctions" would be imposed on both Iran and the Houthi if the situation persisted.

In the gold market, global prices fell by 80 USD per ounce during the 23/7 trading session. By the morning session of 24/7, prices continued to decline, currently standing at 4.047 USD.

Brent crude oil price movements over the past year. *Chart: Trading Economics*

High crude oil prices have fueled concerns about rising inflation and interest rates, which is unfavorable for non-interest-bearing assets like gold. Additionally, a 0,3% increase in the Dollar Index made gold more expensive for non-US buyers. The yield on 10-year US government bonds is also currently at its highest in over one year.

"Rising oil prices are pushing bond yields higher, as expectations grow that central banks cannot lower interest rates due to inflation concerns. Rising yields put pressure on the gold and silver markets because these two metals do not pay fixed interest", explained Jim Wyckoff, an analyst at American Gold Exchange.

Next week, the US Federal Reserve (Fed) will hold a policy meeting. Investors are currently betting on an 83% likelihood of a Fed rate hike in September, higher than the 68% observed earlier this week.

Ha Thu (according to Reuters)