Oil Prices Surge as Gold Edges Towards Weekly Decline Amid Escalating Middle East Tensions

Global Commodity Markets Experience Mixed Open on April 24

Commodity markets opened on a mixed note on April 24 as investors reacted to shifting global macroeconomic signals, currency movements, and evolving demand trends across major economies.

Oil prices rose on Friday morning over fears of renewed military escalation in the Middle East after Iran released footage of commandos boarding a cargo ship in the Strait of Hormuz and on reports Tehran's air defences had engaged "hostile targets". Brent crude futures rose $1.23, or 1.17%, to $106.3 a barrel, while West Texas Intermediate futures were up $1.07, or 1.12%, at $96.92.

Both benchmark contracts settled up more than 3% on Thursday and jumped $5 a barrel after reports that air defences were engaging targets over Tehran and of a power struggle between Iran's hardliners and moderates. US President Donald Trump's statement that Iran may have loaded up its weaponry "a little bit" during the two-week ceasefire, but added that the US military could eliminate it in just a single day, further contributed to the market volatility.

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In the precious metals segment, gold was headed for a weekly decline, snapping four weeks of gains, as the US and Iran intensified a maritime standoff and progress faltered on talks to end the war that's choked energy supplies and heightened inflation risks. Bullion was steady below $4,700 an ounce on Friday, having given up nearly 3% over the week.

Silver was down 0.1% at $75.34 an ounce, while Platinum and palladium were little changed.