Geopolitical shockwaves from Washington’s warning to Tehran drive energy markets higher while analysts predict a strong rebound in gold.
Global markets reacted sharply after Donald Trump issued a 48-hour ultimatum to Iran, warning of decisive action involving the strategic Strait of Hormuz. The move intensified geopolitical tensions and sent energy prices soaring.
US WTI crude surged to $111.5 per barrel, while Brent crude climbed to $109.2, reflecting investor fears over potential supply disruptions in the Middle East. Analysts say the uncertainty has already begun affecting fuel costs in countries like Pakistan, where petroleum prices remain highly sensitive to global shifts.
Meanwhile, Goldman Sachs signaled a bullish outlook for gold despite recent volatility. The precious metal, which saw its steepest monthly drop in over a decade, is now trading between $4,567 and $4,769 per ounce well below its late-January peak near $5,600.
However, the bank projects gold could rebound to $5,400 per ounce by year-end as investors seek safe-haven assets amid escalating risks. Market experts note that long-term holders continue accumulating gold as a hedge against instability.
In Pakistan, gold prices remained largely unchanged in recent trading, though analysts expect future movement to track global trends closely as tensions persist.
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