Today Fundamental Analysis: Oil prices jump following US attack on Iran, stocks pull back

Oil prices climbed on Thursday after renewed U.S. strikes in Iran raised fears of disruptions to shipping through the Strait of Hormuz. Brent crude rose more than 3% to $97.30 per barrel, while WTI crude gained 3.4% to $91.72.

Yesterday, Wall Street closed at record highs, with the Dow Jones and S&P 500 reaching fresh records as falling oil prices supported sentiment. Technology stocks continued to lead gains. However, in early trading today, U.S. stock futures moved lower as investors awaited the release of the Federal Reserve’s preferred inflation measure, the PCE price index.

Gold prices remained under pressure on Thursday, trading near a two-month low and hovering just below the key $4,400 level. The decline comes as renewed tensions in the Middle East strengthened the U.S. dollar and reduced demand for gold despite ongoing geopolitical risks.

At the same time, recovering oil prices have increased concerns about higher inflation, leading investors to expect a more hawkish stance from global central banks, including the Federal Reserve. Markets are now pricing in a growing possibility of future U.S. rate hikes, which has pushed Treasury yields and the U.S. dollar higher, both negative factors for non-yielding assets like gold.

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.