Oil prices rebounded on Thursday, overcoming early losses, driven by investor skepticism about the possibility of a peace deal between the United States and Iran ending the ongoing conflict.
The ongoing war has halted production in key areas of the Middle East and disrupted navigation in the straits.
Brent crude futures gained 1.43% to $96.29 a barrel, while West Texas Intermediate crude rose 1.31% to $92.49.
Gold rebounds
In the precious metals market, gold prices rose today supported by growing cautious optimism about the prospect of ending the war that has fueled global inflation.
Spot gold rose 0.9% to $4830.66 an ounce, while U.S. futures for June delivery rose 0.6% to settle at $4852.40. The moves come amid market expectations of a 30% chance of a US interest rate cut before the end of this year.
Performance of other precious metals
The gains were not limited to gold, but also extended to the basket of other precious metals, with spot silver rising 1.4% to $80.17 an ounce.
Platinum rose 1.2% to $2,134.55, and palladium rose 1.1% to $1,590.14, reflecting investors' hedging against ongoing geopolitical risks.
Qatari warns of global "lighting crisis"
In another context, Qatari Finance Minister Ali bin Ahmed Al-Kuwari warned of the repercussions of the war on Iran, stressing that the world could face a suffocating energy crisis within a few months.
During his participation in the IMF's spring meetings in Washington, al-Kuwari pointed to a bleak scenario in which some governments may find themselves unable to secure the energy needed to fully light their countries, stressing that the current rise in costs is "only the tip of the iceberg."
The Future of Prices and Supply Chains
Analysts say oil prices will remain in the range of $80 to $100 a barrel until a concrete peace deal is reached that guarantees the return of freedom of navigation through the strategic straits. As supply disruptions continue, anxiety remains a major concern in international economic circles, as pressure on government budgets grows and fears of inflation spiral if energy supply shortages persist.