Oil Eases From $94 as Gold Hits Record, FTSE Climbs
Brent crude jumped more than 3 per cent above $94 a barrel after Mr Trump’s threat of “economic warfare” on Iran, before easing back towards $93 as traders judged the sanctions hard to enforce. The FTSE 100 closed 0.6 per cent higher at 10,816.6, led by miners as gold pushed into record territory and a US Treasury bond-buyback weakened the dollar. The index eked out a modest weekly gain.
The moves capture a market caught between two forces: a geopolitical risk premium on oil from the Gulf crisis, and a weaker dollar that lifts commodities priced in it. Brent’s quick retreat from $94 suggests traders doubt Washington can choke Iranian exports while China keeps buying, capping the risk premium for now. Gold’s record run reflects both haven demand and the softer dollar, and it dragged mining shares such as Antofagasta and Endeavour Mining sharply higher in London. The Treasury’s bond-buyback, intended to ease funding strains, added to the dollar’s slide. Watch whether oil’s premium sticks and how gold’s ascent feeds inflation expectations.