Gold Edges Higher as Global Trade War Prospects Grow
2349 GMT — Gold edges higher in the early Asian session. EU and Canada unveiled retaliatory tariffs against the U.S. on Wednesday, further increasing prospects of a global trade war after the U.S. imposed levies on global steel and aluminum imports. Such prospects could enhance the safe-haven appeal of the precious metal. There's uncertainty over the impact of tariffs on the U.S. economy amid talk of a recession, XS.com's Samer Hasn says in an email. Market turmoil has also deepened due to President Trump's repeated 'start-and-stop' over tariffs, Hasn adds. Spot gold is 0.1% higher at $2,937.82/oz. (ronnie.harui@wsj.com)
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It also marked the US entry into the war that began on June 13 when Israel unleashed attacks on Iran's nuclear and military facilities, and killed senior commanders and atomic scientists. US Defense Secretary Pete Hegseth said the strikes had a 'limited' objective, focused on destroying Iran's atomic program. At the United Nations on Sunday, Iranian Ambassador Amir Saeid Iravani told an emergency Security Council meeting that the 'timing, nature and scale' of Tehran's response 'will be decided by its armed forces.' The Islamic Revolutionary Guard Corps, which answers to the Iran's Supreme Leader Ayatollah Ali Khamenei, said it would continue targeting Israel and cited American bases in the region as a vulnerability for the US, without openly threatening them. Trump said he would respond with 'far greater' force to any Iranian retaliation on US assets. He also floated the possibility of regime change in Iran, although US officials, including Secretary of State Marco Rubio, have said it's not their objective. Israeli officials have said while toppling Iranian government isn't a war objective, their attacks could undermine the government to the extent that that happens. Fordow Damage Trump said the three nuclear sites US bombers hit were 'totally obliterated.' Still, others were more cautious, especially in the case of the enrichment site at Fordow that's deep underground. Hegseth and Dan Caine, the chairman of the Joint Chiefs of Staff, were among the US officials who said the extent of the damage wasn't yet clear. The head of the International Atomic Energy Agency, which officially has the task of monitoring Iran's program, told the UN Security Council on Sunday that no one yet knows the condition of Fordow, or the location of Iran's more than 400 kilograms of uranium enriched to 60%. Hormuz Traffic A key area of focus for global markets fretting about Iran's possible venues for retaliation is the Strait of Hormuz, a major artery for the world's oil and gas. Iran's parliament called for the closure of the strait, according to state-run TV on Sunday. But such a move — unprecedented in the Islamic Republic's nearly five-decade history — could not proceed though without the approval of Khamenei, the supreme leader. His office controls decisions of this magnitude, typically in coordination typically with the Supreme National Security Council. Naval forces in the region warned that ships, especially US-linked ones, could be at heightened risk. Greece, home to more oil-tanker capacity than any other nation, cautioned its vessels owners to think again if they're considering entering the Persian Gulf. Two supertankers both capable of hauling about 2 million barrels of crude U-turned in the strait on Sunday. They entered the waterway and then abruptly changed course. One factor that may complicate Iran's decision on how to retaliate is that it is largely isolated on the world stage. Its top allies — Russia and China — are offering only rhetorical support, while the militia groups Tehran has armed and funded for years are refusing or unable to enter the fight. Russian officials have made it clear that a cooperation treaty the two countries signed in January doesn't include mutual-defense obligations. And China, which gets many of its oil and liquefied natural gas imports from the Gulf, including Iran, would be loath to see energy prices soar because of a closure of or attacks on tankers in the Strait of Hormuz. Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? 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