Oil soars 25%, gold drops as Iran war jolts global commodity markets

Brent crude posted its largest one-day gain on record in both percentage and absolute terms as the expanding U.S.-Israeli conflict with Iran prompted some major Middle Eastern producers to cut supplies. The supply disruptions and heightened geopolitical risk are driving sharp oil-price volatility and pose a material market-wide risk, likely to pressure risk assets and inflation expectations.

Analysis

Brent crude posted its largest one-day gain on record in both percentage and absolute terms as the expanding U.S.-Israeli conflict with Iran prompted some major Middle Eastern producers to cut supplies. The supply disruptions and heightened geopolitical risk are driving sharp oil-price volatility and pose a material market-wide risk, likely to pressure risk assets and inflation expectations.