Crude oil hits four-week high as Middle East risks rise

Brent and U.S. crude futures climbed to four-week highs as renewed tension in the Middle East revived concerns about disruption to flows through the Strait of Hormuz.

Oil has drawn the more direct response from traders as military and naval frictions in the region raise the risk to shipping and export routes. Gold, by contrast, has struggled to hold gains even after softer U.S. inflation data that would normally offer support through lower rate expectations.

Recent market coverage showed Brent trading near $97.41 a barrel and West Texas Intermediate around $95.15 as hostilities flared and U.S.-Iran talks remained stalled. The Guardian separately reported crude at its highest in four weeks, tying the advance to confrontation involving Washington and Tehran.

The main concern is the Strait of Hormuz, a chokepoint that carries about a fifth of global crude flows. Reports of military incidents near commercial shipping and fears of a wider halt to tanker traffic have pushed prices higher, though there is still limited evidence of a large physical supply loss.

That distinction matters. Recent reporting has indicated that Middle East exports have stayed largely intact and that Hormuz has remained open to navigation, even as tanker movements slowed at times. The advance in crude appears to reflect insurance against possible disruption rather than a response to barrels already removed from the market.

The pattern has repeated through the latest phase of the conflict. Each escalation in U.S.-Iran or Israel-Iran tension has produced a sharp move in oil, with earlier spikes briefly pushing Brent above $80 and, at more extreme moments earlier in the year, well beyond that level before retreating as immediate supply fears eased.

Gold has not shown the same conviction. Softer U.S. consumer inflation did lift bullion, with spot prices and futures both gaining after the data. CNBC reported spot gold at $4,083.99 an ounce and U.S. futures at $4,091.80 after the release. But other recent sessions have left the metal under pressure, with rallies fading as investors weighed Treasury yields, the dollar and the prospect that interest rates could stay higher for longer.

FXStreet said gold's broader trend remained downward despite the post-data bounce, describing the rally as contained. That points to bullion trading more off the rates and currency backdrop than off geopolitical headlines alone.

The split between oil and gold carries a specific message. Traders are pricing the Middle East story primarily as a supply-route risk for energy rather than a broad flight to safety across asset classes.

If tension deepens and shipping through Hormuz is disrupted, crude could extend higher quickly. If the region avoids a sustained halt to exports, part of the current premium could unwind just as fast. Gold may still benefit if softer inflation shifts the rate outlook more decisively, but for now oil is the market's more immediate geopolitical hedge.