LONDON: Oil prices surged and gold climbed to fresh record highs on Thursday after US President Donald Trump ramped up geopolitical tensions with threats of military action against Iran, prompting investors to seek safety.
International benchmark Brent crude rose sharply, topping $70 a barrel for the first time since September, while gold briefly touched a new all-time high near $5,600 an ounce.
“With the Middle East tinderbox looking set to ignite again, oil prices have moved sharply higher, lifting shares in listed energy giants,” said Susannah Streeter, chief investment strategist at Wealth Club.
Energy markets react
Brent North Sea crude was up 4.3 percent at $70.27 a barrel by around 1445 GMT. US West Texas Intermediate gained 4.7 percent to $66.19.
The rally followed Trump’s warning that Tehran must negotiate a deal over its nuclear programme or face harsher consequences.
Referring to US strikes on Iran’s nuclear facilities in June 2025, Trump said: “The next attack will be far worse. Don’t make that happen again.”
Gold and silver surge
Gold eased slightly after hitting a record $5,595.47 an ounce as investors rushed into safe-haven assets. Silver also surged to a fresh record, reaching $120.44 an ounce.
Analysts said demand for precious metals was being fuelled not only by geopolitical risks but also by concerns over a weakening US dollar.
Those concerns have been sparked by speculation that Trump is comfortable with a softer dollar, despite the risk of higher US inflation.
Stock markets mixed worldwide
Equity markets were mixed across regions as investors weighed geopolitical risks, company earnings and the US Federal Reserve’s latest policy decision.
London’s FTSE 100 rose 1.1 percent to a record 10,268.73 points in afternoon trade, driven by strong gains in mining stocks. Paris added 0.7 percent.
Frankfurt’s DAX fell nearly one percent, dragged down by German software firm SAP.
Its shares plunged almost 15 percent after the company warned of a slowdown in new cloud computing contracts this year, having missed targets in 2024.
In Asia, Tokyo’s Nikkei closed flat, while Hong Kong’s Hang Seng Index rose 0.5 percent and Shanghai’s Composite Index gained 0.2 percent.
Wall Street sees tech-led swings
US markets were mixed in early trade. The Dow Jones Industrial Average was up 0.28 percent, while the S&P 500 fell 0.29 percent and the Nasdaq Composite dropped 0.91 percent.
Meta shares jumped around 10 percent after the Facebook and Instagram parent posted quarterly earnings that beat expectations, supported by revenue growth and heavy investment in artificial intelligence.
Microsoft shares tumbled about 10 percent after its earnings disappointed analysts, raising concerns over returns on its substantial AI spending.
South Korea’s Samsung Electronics reported record quarterly profits, benefiting from strong global demand for memory chips used in AI technologies.
Fed outlook and currencies
The Federal Reserve’s policy update on Wednesday was largely uneventful and did little to move markets.
However, traders remained optimistic that US interest rates could fall, as Trump prepares to name his choice for the next Fed governor.
In currency markets, the euro rose to $1.1965, while sterling climbed to $1.3830. The dollar slipped to 153.20 yen.
