- BIST10011,577-1.87%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,131.80-0.44%
- INTEREST37.00%-1.00
- BITCOIN83,594-0.51%
- October 22, 202614°
- BIST10011,577-1.87%
- USD49.58+0.05%
- EUR55.62+0.09%
- GOLD4,131.80-0.44%
- INTEREST37.00%-1.00
- BITCOIN83,594-0.51%
- October 22, 202614°
Oil Prices Drop, Gold and Dollar Rise as US-Iran Talks Affect Markets
After US Vice President JD Vance announced progress in negotiations with Iran and that the Strait of Hormuz is open, oil prices fell. On the same day, gold prices and the dollar index rose.
Oil prices fell nearly 4 percent on Monday. Gold prices and the dollar index, however, recorded gains.
The move came after US Vice President JD Vance announced that progress had been made in talks with Iran and that the Strait of Hormuz is open.
Vance on Iran
According to Reuters, Vance said the talks with Iranian officials in Switzerland had laid a "solid foundation" for a final peace agreement, despite tensions in the Strait of Hormuz and Lebanon.
According to intermediaries, US and Iranian officials made "encouraging progress" in the first round of negotiations held in Switzerland, which ended early Monday.
Sharp drop in oil
Brent crude oil fell $3.18, or 3.95 percent, to $77.39 a barrel. Prices had risen to $82.30 at the start of trading due to US President Donald Trump's threat to restart war against Iran and Tehran's announcement that it would close the Strait of Hormuz again.
US West Texas Intermediate (WTI) crude oil futures fell $2.15 to $74.45 a barrel. The most actively traded August contract lost 3.28 percent to $73.36.
The negotiations began on Sunday under a memorandum of understanding reached last week. The agreement provides for the fragile ceasefire that has been in place since April to be extended by at least 60 more days.
Gold rises 1 percent
Gold prices rose about 1 percent on Monday. Gold, which had fallen to its lowest level in more than a week in the previous session, recovered as progress in US-Iran negotiations eased pressure on oil prices and reduced inflation concerns.
Spot gold rose 0.9 percent to $4,199.07 an ounce.
Saxo Bank analyst Ole Hansen said, "Energy prices will remain the main driver for the precious metals sector in the short term."
Hansen added, "We see that the ongoing negotiations between the US and Iran in Switzerland continue to point to a deal that will add new barrels of crude oil to the market."
Dollar index rises
The dollar index rose 0.06 percent to 100.90, supported by investor optimism about the possibility of a deal after the first round of US-Iran talks.
The euro fell 0.24 percent against the dollar to $1.1444.
After UK Prime Minister Keir Starmer announced he plans to resign, the pound recovered from its intraday low to rise to $1.318. According to the Financial Times, the pound reached $1.32 and €1.15.
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