Uncertain Prospects for US-Iran Ceasefire as Oil Prices Rise and Gold Faces Pressure

On April 23, oil prices increased as Iran vowed not to reopen the Strait of Hormuz as long as the US continues to blockade Iranian ports. Al Jazeera reported that around 8:30 AM, both US and Brent crude oil prices surged before quickly retreating, with prices continuing to fluctuate slightly due to uncertainty over whether the conflict would reignite. Iranian International Television later reported multiple explosions in eastern and western Tehran early Thursday morning, with sources indicating the sounds resembled the operation of air defense systems, although this information has not been confirmed by other media. KCM Trade Chief Market Analyst Walter stated, ‘Brent crude oil briefly returned to triple-digit prices, keeping inflation concerns at the forefront of the market and putting gold on the defensive today.’ Walter noted, ‘Investors are worried that this state of ‘ceasefire and blockade’ could last for months, potentially turning short-term price spikes into long-term inflation anchors; from the perspective of asset yields, this will be bearish for gold prices.’ (Jin Shi)