After the breakdown of US-Iran peace talks, President Trump ordered a blockade of the Strait of Hormuz, causing international oil prices to surge and gold prices to temporarily fall by 2% to approximately $4,650 per ounce, giving back all of the previous week's gains. Negotiations held in Pakistan over the weekend, prior to the blockade announcement, failed to transition an unstable ceasefire into permanent peace after six weeks of conflict in the Middle East. The subsequent surge in energy prices is increasing inflation risks, making it more likely that central banks around the world will delay interest rate cuts or even move to raise them.
