Crude oil prices jump over $95/bbl after US Navy attacks Iranian-flagged cargo vessel; COMEX gold down 1%

Crude oil prices in the global market jumped above $95 per barrel during the early market session on Monday, April 20, after President Donald Trump disclosed that the US Navy attacked an Iranian-flagged cargo ship amid the US blockage of the Strait of Hormuz.

The market sentiment amongst the investors remained cautious due to the recent allegations of the US-Iran ceasefire violation over the weekend and the absence of a potential peace deal between the United States and Iran so far.

Global benchmark Brent crude oil prices jumped to around $96 per bbl region during the early trading hours on April 20, after the commodity closed lower near the $91 per bbl levels. Oil prices dropped to a low of $86.09 per bbl during Friday’s trading session, according to Investing.com data.

The West Texas Intermediate (WTI) crude oil prices jumped above $88 per bbl region during the early hours on Monday, after the commodity markets closed lower around the $84 per bbl levels.

Crude oil prices today

As of 7:20 am (IST), the Brent crude oil prices were trading over 5% higher at $95.02 per bbl on Monday, compared to $90.38 per bbl at the previous commodity market close, according to Investing.com data.

The US-based WTI crude oil prices were trading 5.3% higher at $87.02 per bbl on April 20, compared to $82.5 per bbl at the previous market close, as per the exchange data.

US-Iran conflict update

Crude oil prices were trading higher on Monday, April 20, after the West Asia tensions heightened over the United States attacking an Iranian-flagged cargo ship named “Touska” by hitting the vessel and ‘blowing a hole’ in its engine room.

“An Iranian-flagged cargo ship named TOUSKA, nearly 900 feet long and weighing almost as much as an aircraft carrier, tried to get past our Naval Blockade, and it did not go well for them,” said Trump. “The Iranian crew refused to listen, so our Navy ship stopped them right in their tracks by blowing a hole in the engine room.”

According to a CNN report, the Iranian military has warned that it will take retaliatory actions against the move amid the ceasefire which is scheduled to expire this week on Wednesday, April 22.

“We warn that the Armed Forces of the Islamic Republic of Iran will soon respond to and retaliate against this U.S. armed piracy,” they said, according to the news report.

On the potential peace deal front, President Trump in a separate post said that the US officials will be heading for the second round of negotiations this week, while also alleging that Iran carried out a ‘total violation’ of the ceasefire agreement.

“They will be there tomorrow evening, for negotiations. Iran recently announced that they were closing the Strait, which is strange, because our blockade has already closed it,” said Trump in his post.

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading 1.2% lower at $4,821.20 per ounce as of 10:18 pm (EDT), compared to $4,879.60 per ounce at the previous market close, according to the official data.

The gold prices were facing pressure on Monday’s market India time, due to the elevated US dollar rate due to the rising uncertainties in West Asia. Data collected from the Bloomberg US dollar spot index (DYX) showed that the greenback was trading 0.20% higher at 98.298 as of 10:18 pm (EDT), compared to the previous market close.

Traders tend to buy less commodities like precious metal gold with a higher dollar rate in the market as they will receive less of the commodity at a higher price considering the majority of gold trade is carried out using the greenback.