MUFG: Oil Extends Gains as US-Iran Standoff Persists - FJElite

Oil rose for a fourth consecutive session as prospects for resolving the nearly six-month US-Iran conflict remained limited. Brent climbed toward $92 a barrel after gaining 4.5% over the previous three sessions, while WTI traded near $86. Trump said no negotiations with Iran were underway, leaving the Strait of Hormuz contested and traffic severely constrained. The US is preparing additional economic measures while maintaining its port blockade, while the UAE has suspended trade and financial transactions with Iran. Disruptions to Russian refining and exports are also tightening global diesel markets and supporting refining margins.

Gold rebounded above $4,360 an ounce as Treasuries stabilised after the recent selloff, supported by renewed investor demand and continued central-bank buying, particularly from China. However, the unresolved US-Iran conflict remains a constraint, as higher oil prices could keep inflation elevated and reinforce expectations for tighter Fed policy. The July FOMC minutes and Kevin Warsh’s Jackson Hole speech are the next key events for the rates outlook and gold.