Gold prices reached an all-time high above $3,500 per ounce due to increased speculation of a September interest rate cut by the US Federal Reserve and ongoing political tensions.
The renewed Red Sea volatility comes as Axios reports that Israeli officials believe Donald Trump would authorize pre-emptive military action against Iran’s nuclear program if he returns to office. Israeli Prime Minister Benjamin Netanyahu is expected to raise the issue during a closed-door dinner with Trump this week. Tehran has restarted centrifuge operations at key enrichment sites, setting off fresh alarm in Tel Aviv.
Despite bullish inventory and mere hopes that the trade war will not escalate, global economic concerns look set to put significant limitations on how far crude could climb in this climate. The World Trade Organization (WTO) slashed its 2025 global trade growth forecast from +3.0% to -0.2%, citing escalating tariff risks. If the U.S. proceeds with reciprocal tariffs, global trade could shrink by as much as -1.5%, raising fears of reduced energy demand.