Wall Street falters while oil surges and gold holds steady

U.S. stock markets declined, while oil prices surged sharply due to tensions in the Middle East. Statements by Iran’s new Supreme Leader regarding the Strait of Hormuz have fueled fears of potential disruptions to energy supplies, pushing crude prices higher.

The Dow Jones Industrial Average fell by 512 points, or 1.1%. The S&P 500 lost 0.8%, as did the Nasdaq Composite.

Oil prices continued to rise after Iran’s new Supreme Leader, Mojtaba Khamenei—appointed on March 9—stated that the Strait of Hormuz should remain closed as a “tool to put pressure on the enemy.”

Futures on West Texas Intermediate rose by 7%, reaching around $94 per barrel, while Brent futures climbed 7% to about $99 per barrel after once again approaching the $100 mark.

As for gold, no rally has been recorded despite the conflict in the Middle East. The safe-haven asset fell by 0.44% during this morning’s session.

Gold had surged sharply during last year’s 12-day war with Iran, only to give back its gains when a ceasefire was announced. However, two weeks after the start of the latest conflict, its price remains largely stable.

The precious metal rose from $5,296 to $5,423 per troy ounce after the United States and Israel launched attacks on Iran on February 28, confirming the idea that geopolitical tensions push investors toward traditional safe-haven assets.

During periods of conflict or strong political instability, investors tend to buy gold because it is considered a safe asset.

Following the attacks on Iran, the price of the yellow metal increased, but unlike the previous conflict, the market has not recorded particularly significant changes in the weeks that followed this time.

Benedetta Zimone