Oil prices rose in recent trading to beat the benchmark Brent crude futures at $92 per barrel, following official reports that increased risks related to the disruption of global energy supplies due to military developments and fears of the closure of vital sea crossings.
Reports issued by international financial institutions and investment banks, led by Goldman Sachs, confirmed that the price of Brent crude could exceed the level of $120 per barrel during the fourth quarter of this year, if the disruptions in export and navigation through the Strait of Hormuz and the Bab al-Mandeb Strait continue.
Tanker tracking data showed that dozens of ships loaded with crude oil and refined derivatives were forced to change their sea routes in the Red Sea and head for longer routes around the African continent.
These alternative routes have caused unprecedentedly high shipping costs, logistics, and insurance premiums, threatening to impose new inflationary pressures on the global economy, according to the Energy Sector Bulletin.
Financial industry sources said reports from the U.S. Energy Information Administration and the Petroleum Institute updated in late July showed fluctuations in inventory and production levels, casting a shadow over markets' outlook for the remainder of the year.
The Rise of Gold and the Restoration of Safe Havens
Gold prices in spot and live trading rose above $4130 an ounce, hitting their highest levels in more than two weeks as cash flows into safe-haven assets spurred.
Yellow metal futures trading platforms for August delivery confirmed that prices rose by more than $59 to reach $4138.50 an ounce during the last trading in July.
Financial transactions market reports revealed that the US currency index fell against the main basket of international currencies to decline towards 101.12 points, which provided additional and direct support to precious metals prices.
Data from gold ETFs showed a sharp increase in holdings of about 7.4 tonnes in a single day, the highest daily inflow rate recorded by the funds in several weeks.
KCM Trade's chief market analyst Tim Waters said in press statements that buying was heavy and increased following the temporary price drop, which contributed to the yellow metal regaining its previous gains.
Spot silver prices rose to $59.49 an ounce, with platinum and palladium prices jumping between 1.7% and 2.2% in global markets.
Stock market gains and tech sector recovery
Global exchanges in Asia, Europe, and the United States reported broad-based financial gains, supported by strong and intense gains in semiconductor and artificial intelligence stocks.
Official data released by the MSCI Asia-Pacific Stock Index revealed a rise of 1.2%, while South Korea's Kospi jumped by a record rate of more than 6% following the announcement of positive export data for chip companies.
Wall Street trading bodies confirmed that the S&P 500 ended its session up 0.9%, marking a new phase of recovery led by major technology companies in late July.
According to investment memos issued by global banks, customers focused their attention on the business results of benchmarks companies such as Alphabet and Tesla to determine the size of capital expenditure and competitiveness in the development of artificial intelligence models and software applications.
Reports from Japanese markets showed that the Nikkei 225 index gained 1.9%, driven by government and institutional investments to develop robotics technologies and support advanced local manufacturing capabilities.