Crude oil prices jump to $92/bbl after fresh round of US-Iran military strikes; gold drops 1.8%

Crude oil prices jumped to above $92 per barrel (bbl) during the early market hours on Wednesday, June 10, after the United States and Iran carried out a fresh round of military action against each other amid no signs of a peace deal from the third round of ongoing negotiations.

During Tuesday’s evening commodity market session, global benchmark, Brent crude oil prices dropped to near $89 per bbl only to later surge by 4.4% intraday to a high of $93 per bbl during morning market hours, India time.

The United States Central Command (CENTCOM) in an official post disclosed about the recent “self defence” military strikes on Iran, which comes hours after US President Donald Trump’s warnings that America will respond to the attack on its Apache helicopters.

Crude oil prices today

At 7:25 am (IST), the Brent crude oil prices were trading 0.77% higher at $92.51 per bbl on Wednesday, compared to $91.81 per bbl at the previous market close, according to Investing.com data.

Although the crude oil prices are trading 5.4% lower over the last five trading session, the recent attacks between the United States and Iran have led to a spike in oil prices as investors become wary of any further escalations.

Oil prices remains sensitive and bound to the dynamic developments in West Asia, so any further escalation of the conflict can likely increase the energy rates further, in turn weighing down on the global markets.

The data also showed that the crude oil prices have risen 5.3% in the last three months and more than 48% in the last six months.

The US-based West Texas Intermediate (WTI) crude oil prices were trading 1.27% higher at $89.31 per bbl on Wednesday, compared to $88.2 per bbl at the previous commodity market close, according to the exchange data.

US strikes on Iran

In response to Iran allegedly shooting down one of the Apache helicopters patrolling over the Strait of Hormuz, the United States military under the direction of President Donald Trump carried out “self defence strikes” against Iran on June 9 (ET).

“CENTCOM forces struck Iranian air defense, ground control stations, and surveillance radar sites near the Strait of Hormuz with precision munitions from U.S. Air Force and Navy fighter jets,” said United States Central Command in an official post on platform X.

The authority also said that the US military forces will continue to remain vigilant and positioned to defend against any “unjustified Iranian aggression” in West Asia.

In further response to the US strike, Iran’s Islamic Revolutionary Guard Corps (IRGC) during the early hours on Wednesday, targetted the US fifth fleet in Bahrain.

“IRGC Navy forces launched a drone attack at 2:30 a.m. against the U.S. Fifth Fleet in Bahrain,” according to a statement from the semi-official Tasnim News Agency, cited in a CNN report.

The local media report further alleged that the United States carried out strikes against Jask, Sirik and Qeshm. The military strikes allegedly damaged a communication tower and destroyed two water reservoirs in the Bamani district.

All eyes no remain focused on any positive signs from the US-Iran negotiations while investors also look out for any further escalations which can potentially impact the oil prices in the global market.

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading 1.8% lower at $4,207.90 per ounce as of 10:05 pm (ET), compared to $4,286.40 per ounce at the previous commodity market close, according to the official data.

Gold prices were trading significantly lower during Wednesday’s trading session, India time, on the backdrop of a higher US dollar rate in the market. Traders are likely to purchase less gold if the currency rate is elevated in the global market.

After a brief cooldown on Tuesday, the US dollar rates climbed back to near the psychological 100 mark in the market on Wednesday amid the rising tensions in West Asia due to the fresh attacks.

Data collected from the Bloomberg US dollar spot index (DYX) showed that the greenback was trading 0.09% higher at 99.997 as of 10:06 pm (ET) in the United States, compared to the previous market close.