Escalating US-Iran Tensions Drive Oil Prices Higher and Fuel Risk-Off Sentiment in Markets

Renewed military exchanges between the United States and Iran over the weekend, including US airstrikes and conflicting statements regarding the Strait of Hormuz, have led to a significant 'risk-off' shift in global financial markets. Oil prices have climbed, with Brent crude approaching $80 per barrel, while gold declined as the prospect of higher energy prices revives concerns about inflation and potential interest rate hikes.