Gold sticks to modest intraday gains heading into the European session, though it lacks follow-through buying and remains below the $5,200 mark. Geopolitical risks remain in play amid a further escalation of tensions in the Middle East, which in turn, assists the safe-haven precious metal to build on the previous day’s bounce from the vicinity of the $5,000 psychological mark.
Gold rises as geopolitical risks underpin safe-haven demand; USD strength limits gains
Gold (XAU/USD) builds on the overnight goodish rebound from the vicinity of the $5,000 psychological mark and attracts some follow-through buying during the Asian session on Tuesday. Iranian officials dismissed US President Donald Trump’s remarks that the Middle East conflict will end soon as nonsense and warned that regional security would either exist for everyone or for no one. Moreover, Iran’s Islamic Revolutionary Guard Corps (IRGC) said that Tehran, not Washington, will determine when the war ends. This keeps geopolitical risks in play and helps revive demand for the safe-haven precious metal.
Meanwhile, Crude Oil prices regain positive traction following the previous day’s dramatic turnaround from the highest level since June 2022 amid worries about potential disruptions in supplies due to the closure of the Strait of Hormuz. Investors remain worried that a sustained increase in energy prices would drive up inflation and prompt the US Federal Reserve (Fed) to delay rate cuts. This, in turn, remains supportive of elevated US Treasury bond yields, which assists the US Dollar (USD) to stall the overnight retracement slide from a three-month peak and keeps the non-yielding Gold below the $5,200 mark.
The mixed fundamental backdrop warrants some caution before placing aggressive bullish bets on the XAU/USD pair, as traders now look forward to the US inflation figures for a fresh impetus. The US Consumer Price Index (CPI) is due for release on Wednesday and will be followed by the US Personal Consumption Expenditure (PCE) Price Index on Friday. The crucial data will play a key role in influencing Fed rate-cut expectations and drive the USD demand, which, in turn, should provide a fresh impetus to the Gold. The focus, however, remains on developments surrounding the US-Israel war with Iran.
XAU/USD 4-hour chart
Gold needs to break out through trading range barrier to back the case for additional gains
From a technical perspective, the XAU/USD pair has been oscillating in a range over the past week or so and finding some support ahead of the rising 200-period Exponential Moving Average (EMA) on the 4-hour chart. The latter is pegged at around $5,010, which coincides with the lower end of the trading range and should act as a key pivotal point for short-term traders.
The Moving Average Convergence Divergence (MACD) line has turned positive and extends above its signal line, with a growing positive histogram that suggests strengthening upside momentum after the recent consolidation. The Relative Strength Index hovers just above 50, reinforcing the idea of emerging bullish pressure rather than overextended conditions.
Moreover, the near-term bias seems tilted mildly bullish as the Gold price holds above the $5,010 confluence, keeping the broader uptrend structure intact. Initial support appears at the recent swing area near $5,140, with a deeper floor at the 200-period EMA on the 4-hour chart.
On the topside, immediate resistance comes in around the late-swing highs near $5,190, where prior rejection capped advances, followed by a higher barrier at $5,230 if buyers extend the move. A sustained hold above $5,140 would keep the bullish bias in play, while a break below $5,010 would weaken the upward outlook and shift focus back toward a corrective phase.
(The technical analysis of this story was written with the help of an AI tool.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Australia National Australia Bank’s Business Conditions unchanged at 7 in February
The Pound Sterling is down 0.5% to near 1.3350 against the US Dollar during the European trading session. The GBP/USD pair tumbles as the US Dollar outperforms its peers, with demand for safe-haven assets remaining firm, amid war in the Middle East between the United States, Israel, and Iran.
US Dollar Index touches 15-week high before fading into the close
The US Dollar Index (DXY) slipped about 0.2% on Monday after touching a 15-week high near 99.70 in the early session. The index gapped higher at the open before sellers stepped in, pushing price back toward the 99.00 area by the close and leaving a long upper wick on the daily candle. The reversal came after a sharp rally from the late-January lows close to 95.56, with the index gaining roughly four points in six weeks as safe-haven demand and shifting rate expectations lifted the Greenback.
The US Dollar (USD) has been the primary beneficiary of the Strait of Hormuz crisis, with traders viewing the US as relatively insulated from the supply shock given its energy independence. Rate cut expectations have been scaled back sharply over the past week; markets now price only one 25 basis point cut from the Federal Reserve (Fed) this year, likely in September, compared with two cuts expected before the conflict began. The Fed is holding rates at 3.50% to 3.75%, and January Federal Open Market Committee (FOMC) minutes showed several officials discussed the possibility of hiking rates if inflation stays above target.
Wednesday’s February Consumer Price Index (CPI) release from the Bureau of Labor Statistics (BLS) is the week’s marquee event, with headline CPI expected at 0.3% MoM and 2.4% YoY. The energy price shock from the Hormuz closure began in the final days of February and is unlikely to be fully captured in this print, though any upside surprise would further cement the hawkish repricing. Friday’s slate is equally dense: January core Personal Consumption Expenditures Price Index (PCE) is forecast at 0.4% MoM and 3% YoY; preliminary fourth-quarter Gross Domestic Product (GDP) is expected at 1.4% annualized; and the University of Michigan (UoM) March consumer sentiment index is forecast to drop to 55 from 56.6.
DXY daily chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022.
Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates.
When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system.
It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
GBP/USD slips as Oil surge, Iran conflict boost US Dollar
The British Pound losses some ground versus the US Dollar on Monday as risk aversion keeps the Greenback bid, sponsored by the escalation of the Iran conflict. This triggered a sudden jump of oil prices, which are up 11%, retreating after gaining nearly 30% during the Monday’s Asian session. At the time of writing, GBP/USD trades at 1.3366, down 0.28%.
Greenback appreciated on risk-off mood, rising crude prices
Most G8 FX currencies depreciated against the American currency, which according to the US Dollar Index (DXY), posts gains of over 0.34%. The DXY, which measures the buck’s performance against six currencies, is at 99.20, after reaching a nearly three months high of 99.69, a level last seen late in November of 2025.
The rise on Crude Oil prices spurred by ships unable to pass through the Strait of Hormuz triggered adjustments in Oil production amongst Gulf countries, like Iraq, Kuwait and the United Arab Emirates. The lack of signs of a de-escalation of the conflict could trigger a second wave on inflation, increasing stagflation fears.
In the meantime, G7 finance ministers plan to discuss petroleum release from its reserves according to an article of the Financial Times (FT), which could temper the jump in Oil prices.
The New York Fed Survey of Consumer Expectations (SCE) revealed that inflation expectations for one year are seen at 3% in February, down from 3.1 % in January, while both for three and five years are anchored at 3%.
Monday’s economic docket in the UK was absent, yet traders are eyeing the release of BRC Retail Sales for February. Alongside this, traders are waiting for Industrial Production data, GDP figures and a speech by the Bank of England Governor Andrew Bailey.
In the US, the schedule will feature jobs data, housing data – namely Existing Home Sales, Building Permits and Housing Starts, inflation on the consumer side and the Federal Reserve favorite inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.
Given the backdrop and the rise of Oil prices, the US Dollar is poised to remain in the front seat due to its haven appeal. Hence, further GBP/USD downside is seen, unless the countries involved in the Iran conflict, decide to end the war, which would ease inflationary pressures and improve market mood.
GBP/USD Price Forecast: Technical outlook
In the daily chart, GBP/USD trades at 1.3392. The near-term bias looks neutral with a slight bearish tilt as spot hovers just above the clustered 50/100/200-day simple moving averages around 1.3530–1.34 but remains capped by the descending resistance trend line from 1.3869. Price has slipped back below the recent sequence of lower highs while the upward-sloping support trend line from 1.3035 continues to hold, highlighting compression between long-term support and short-term selling pressure. The fading FXS Fed Sentiment Index, which has steadily retreated from above 123 to near 109, aligns with a softer macro backdrop for sterling against the dollar and limits the chances of a decisive upside break in the very near term.
Immediate resistance is seen at the descending trend-line zone near 1.3450, with a daily close above that area needed to reopen the path toward 1.3550 and the late swing high at 1.3695. On the downside, initial support emerges at the recent low around 1.3360, followed by 1.3300, where a break would expose the rising trend-line region projected from 1.3035 and signal an extension of the pullback. A sustained move below that dynamic support would strengthen the bearish case and shift focus toward 1.3200, while holding above 1.3360 keeps the pair locked in a broader consolidation beneath the downtrend line.
(The technical analysis of this story was written with the help of an AI tool.)
Pound Sterling Price This Month
The table below shows the percentage change of British Pound (GBP) against listed major currencies this month. British Pound was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.86% | 0.73% | 1.31% | -0.69% | 0.95% | 1.17% | 0.58% | |
| EUR | -1.86% | -1.09% | -0.55% | -2.50% | -0.88% | -0.66% | -1.25% | |
| GBP | -0.73% | 1.09% | 0.61% | -1.42% | 0.21% | 0.43% | -0.16% | |
| JPY | -1.31% | 0.55% | -0.61% | -1.97% | -0.36% | -0.14% | -0.72% | |
| CAD | 0.69% | 2.50% | 1.42% | 1.97% | 1.64% | 1.85% | 1.28% | |
| AUD | -0.95% | 0.88% | -0.21% | 0.36% | -1.64% | 0.21% | -0.36% | |
| NZD | -1.17% | 0.66% | -0.43% | 0.14% | -1.85% | -0.21% | -0.59% | |
| CHF | -0.58% | 1.25% | 0.16% | 0.72% | -1.28% | 0.36% | 0.59% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Silver Price Forecast: XAG/USD recovers major early losses, outlook remains uncertain
Silver price (XAG/USD) claws back a majority of its early losses and recovers to near its opening price around $84.00 during the European trading session on Monday. The white metal is expected to remain under pressure as higher United States (US) Treasury yields due to strengthening market speculation that the Federal Reserve (Fed) will not cut interest rates in the near term have diminished the appeal of non-yielding assets, such as Silver.
10-year US Treasury yields are up almost 2% around 4.22% during the press time. Higher yields on interest-bearing assets diminish the appeal of non-yielding assets.
According to the CME FedWatch tool, traders expect the Fed to leave interest rates unchanged in the next three policy meetings in March, April, and June. For the July policy meeting, the odds of the Fed holding interest rates steady have increased to 46.7% from 39.3% seen on Friday.
Traders have pared significant dovish Fed bets amid surging oil prices, which have already prompted global consumer inflation expectations. Meanwhile, the US gasoline prices reached an average of $3.41 per gallon on Saturday, according to The New York Times (NYT).
In addition to receding dovish Fed expectations, rising US Dollar (USD) due to roaring oil prices and firm safe-haven trade amid the Middle East war has also weighed on the US Dollar.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.5% higher to near 99.35.
Technically, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.
Silver technical analysis
XAG/USD trades slightly lower at around $83.90 at the press time. The near-term bias is neutral as spot trades close to the 20-day Exponential Moving Average (EMA), which has flattened near $84.75. Price action has been oscillating around this average for several sessions, signaling a lack of directional conviction after April’s sharp reversal from above $110.
The 14-day Relative Strength Index (RSI) wobbles inside the 40.00-60.00 zone, signaling a lack of strong buying pressure and favoring a defensive tone.
Nearest resistance emerges in the recent swing area around $90.00, where prior rebounds stalled. A daily close above $90.00 would be needed to ease the current downside bias and reopen the way toward the mid-$90s. On the downside, initial support sits near the recent $82.00 low, with a break exposing the $78.00 region as the next key floor. A sustained move below $78.00 would confirm a deeper corrective phase toward the mid-$70s zone.
(The technical analysis of this story was written with the help of an AI tool.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Gold pares intraday losses and retakes $5,100; bullish USD limits recovery potential
Gold (XAU/USD) recovers over $100 from a four-day low, touched earlier this Monday, and now trades above the $5,100 mark heading into the European session, still down over 0.40% for the day. Investors remain worried about the effects of a protracted Middle East conflict on Crude Oil prices and the global economy, which, in turn, acts as a tailwind for the safe-haven precious metal.
The joint US-Israeli campaign against Iran enters its tenth day on Monday, with no signs of an end to hostilities. Moreover, Iran named Ayatollah Ali Khamenei’s son, Mojtaba Khamenei, as the new Supreme Leader, signaling hardliners remain firmly in charge. This raises the risk of a further escalation of tensions as the move is unlikely to be welcomed by US President Donald Trump, who had declared the son “unacceptable”.
Meanwhile, the closure of the Strait of Hormuz – a vital shipping route for oil and gas – fuels worries about an energy shock, which could disrupt economic activity. These further temper investors’ appetite for riskier assets, which is evident from a sea of red across the global equity markets, and further lend support to the Gold.
Meanwhile, an intraday surge of over 25% in Crude Oil prices fueled inflation concerns and further dimmed the prospects for near‑term rate reductions by the US Federal Reserve (Fed), offsetting Friday’s dismal US Nonfarm Payrolls (NFP) report. This, in turn, lifts the US Dollar (USD) to a fresh high since November 2025 and should keep a lid on any further recovery for the non-yielding Gold, warranting caution for bullish traders.
XAU/USD 4-hour chart
Gold defends 200-EMA pivotal support on H4; not out of the woods yet
The near-term bias is neutral with a modest downside tilt, as the Gold price oscillates above the rising 200-period Exponential Moving Average (EMA) on the 4-hour chart, showing that the broader uptrend remains intact but momentum has cooled. The Moving Average Convergence Divergence (MACD) indicator slips marginally below its signal line around the zero mark and the histogram has turned slightly negative, suggesting fading bullish pressure rather than an outright bearish regime. The Relative Strength Index at 43 hovers below the 50 midline, aligning with a consolidative tone after the late pullback from this month’s highs.
Immediate support emerges at the $5,060 region, guarding the more important $5,000 area where the 200-period EMA converges with recent reaction lows, and a break below this zone would open the way toward $4,960. On the upside, initial resistance is located around $5,140, the latest swing high before the current drift lower, followed by $5,180 as the next barrier to restore a more convincing bullish profile. A sustained move above $5,180 would neutralize the current downside bias and expose the $5,230 area, while failure to hold above $5,000 would shift focus toward a deeper corrective phase.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Price This Month
The table below shows the percentage change of US Dollar (USD) against listed major currencies this month. US Dollar was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 2.10% | 1.22% | 1.49% | -0.90% | 1.43% | 1.65% | 0.71% | |
| EUR | -2.10% | -0.85% | -0.60% | -2.93% | -0.64% | -0.44% | -1.36% | |
| GBP | -1.22% | 0.85% | 0.27% | -2.10% | 0.21% | 0.41% | -0.51% | |
| JPY | -1.49% | 0.60% | -0.27% | -2.34% | -0.05% | 0.15% | -0.77% | |
| CAD | 0.90% | 2.93% | 2.10% | 2.34% | 2.35% | 2.55% | 1.62% | |
| AUD | -1.43% | 0.64% | -0.21% | 0.05% | -2.35% | 0.21% | -0.71% | |
| NZD | -1.65% | 0.44% | -0.41% | -0.15% | -2.55% | -0.21% | -0.92% | |
| CHF | -0.71% | 1.36% | 0.51% | 0.77% | -1.62% | 0.71% | 0.92% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
New Zealand Dollar holds losses despite hotter Chinese CPI inflation data
The NZD/USD pair faces some selling pressure to near 0.5865 during the early Asian session on Monday. The US Dollar (USD) strengthens against the New Zealand Dollar (NZD) as the US-Israeli war with Iran shows no sign of resolution, boosting safe-haven demand.
The latest data from the National Bureau of Statistics of China on Monday showed that China’s Consumer Price Index (CPI) climbed 1.3% YoY in February, compared to an increase of 0.2% in January. This figure came in above the market consensus of 0.8%. Meanwhile, China’s Producer Price Index (PPI) declined 0.9% YoY in February, versus a 1.4% fall in January, better than the expectations of -1.1%.
On a monthly basis, the Chinese CPI inflation arrived at 1.0% MoM in February, versus a rise of 0.2% prior. However, the encouraging Chinese economic data fail to boost the China-proxy Aussie as the markets remain cautious amid escalating tensions in the Middle East.
Iran picked Mojtaba Khamenei as the country’s new supreme leader just over a week after his father, Ayatollah Ali Khamenei, was killed in US-Israeli strikes. US President Donald Trump said that he would exert influence over Iran’s next supreme leader, saying that whoever is picked for the role without Washington’s approval is “not going to last long.”
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
China Foreign Exchange Reserves (MoM) increased to $3428T in February from previous $3.428T
Gold prices staged a turnaround on Friday, reversing the earlier decline and trading just above the $5,170 mark per troy ounce. The yellow metal continues to draw support from safe haven demand linked to tensions in the Middle East, although gains remain measured as investors weigh the prospect of higher inflation.
Breaking: Iran says no more attacks against neighbouring countries “unless they attack first”
During an address broadcast by Iranian state TV, President Masoud Pezeshkian apologised to the neighbouring countries for attacks launched following US-Israel strikes but asserted that Tehran will not strike “unless they attack first”.
Key quotes
I must apologise on my own behalf and on behalf of Iran to the neighbouring countries that were attacked by Iran.
The interim leadership council agreed yesterday that no more attacks will be made on neighbouring countries and no missiles will be fired unless an attack on Iran originates from those countries.
Tehran would “not surrender” to US President Donald Trump’s demands of “unconditional surrender”.
The comments come after Iran launched attacks on Gulf countries hosting US forces with waves of retaliatory missile and drone strikes since the US-Israeli attacks began last Saturday.
Market implications
The Iranian President’s address could be seen as the first step toward de-escalation. However, unless Iranian forces provide some assurance on the safe resumption of commercial traffic through the Strait of Hormuz, market panic and uncertainty are expected to remain high.
The deepening Middle East conflict sent oil prices through the roof, with West Texas Intermediate (WTI) having surged roughly 32% over the week to its highest level since October 2023 at $90.