Gold rises as investors seek safe havens amid Middle East conflict fears
Gold prices inched higher on Monday as investors turned to safe-haven assets amid growing fears of a broader Middle East conflict, with markets closely watching for Iran's response to U.S. attacks on its nuclear sites.
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* Spot gold was up 0.1% at $3,371.30 an ounce, as of 0020 GMT. U.S. gold futures were steady at $3,387.20.
* The world braced on Sunday for Iran's response after the U.S. attacked key Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution. * In a televised address, U.S. President Donald Trump warned Iran against retaliating, stating that any response would trigger further attacks unless Iran agreed to pursue peace. * Tehran vowed retaliation, with missile exchanges between Iran and Israel continuing over the weekend. Israeli fighter jets struck military sites in western Iran, according to officials, while Iranian missiles wounded scores of people and flattened buildings in Tel Aviv.
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* Meanwhile, the close split at the U.S. Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now.
* The Fed's latest Monetary Policy Report to Congress, released on Friday, said that U.S. inflation remains somewhat elevated and the labor market is solid. However, it suggested that the full impact of Trump's tariffs is likely yet to be felt, reiterating the Fed's stance that it can wait for greater clarity before making policy moves.
ADVERTISEMENT * On Friday, Trump once again floated the idea of firing Fed Chair Jerome Powell, whom he has long criticized for not lowering interest rates as much as he wants. * Elsewhere, spot silver was up 0.1% at $36.03 per ounce, platinum fell 0.3% to $1,260.78, while palladium edged down 0.1% to $1,043. DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op, SVC PMI, Mfg PMI Flash SA June 0715 France HCOB Mfg, Services, Composite Flash PMI June 0730 Germany HCOB Mfg, Services, Composite Flash PMI June 0800 EU HCOB Mfg, Services, Composite Flash PMI June 0830 UK Flash Composite, Manufacturing, Services PMI June 1345 US S&P Global Mfg, Services, Comp PMI Flash June 1400 US Existing Home Sales May.
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Time of India
18 minutes ago
- Time of India
Strait of Hormuz blockade looms: Asian countries most vulnerable to Iran's trump card
Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites. Around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through the strait per day -- representing around 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA). And crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran almost exclusively passes through the corridor. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your IQ Is 140 If You Can Answer 10 Of These Questions Correctly IQ International Undo Here are the main Asian countries where oil exported via the strait is destined: China More than half of the oil imported by East Asia passes through the Strait of Hormuz, experts estimate. Live Events China is one of the largest buyers, importing 5.4 million barrels of crude oil a day through Hormuz in the first quarter this year, according to the EIA. Saudi Arabia is China's second-largest supplier of crude oil, accounting for 15 percent of its total oil imports -- 1.6 million barrels a day. China also buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler. It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March. India India is highly dependent on the Strait of Hormuz, importing 2.1 million barrels of crude a day through the corridor in the first quarter, EIA data shows. Around 53 percent of India's imported oil in early 2025 came from Middle Eastern suppliers, particularly Iraq and Saudi Arabia, local media reported. Also Read: India safe from Strait of Hormuz closure due to diversified oil imports, says Hardeep Singh Puri Wary of an escalating conflict in the Middle East, New Delhi has increased its imports of Russian oil over the past three years. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks," India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Sunday. "We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," he wrote on X, adding "We will take all necessary steps to ensure stability of supplies of fuel to our citizens." South Korea Around 68 percent of South Korea's crude oil imports pass through the Strait of Hormuz -- 1.7 million barrels a day this year, according to the EIA. South Korea is particularly dependent on its main supplier Saudi Arabia, which last year accounted for a third of its oil imports. Seoul's trade and energy ministry said there have been "no disruptions so far in South Korea's crude oil and LNG imports" but "given the possibility of a supply crisis", officials were "planning for potential disruptions in the Strait of Hormuz". "The government and industry stakeholders have prepared for emergencies by maintaining a strategic petroleum reserve equivalent to about 200 days of supply," the ministry said in a statement. Japan Japan imports 1.6 million barrels of crude oil a day through the Strait of Hormuz, the EIA says. Japanese customs data showed 95 percent of crude oil imports last year came from the Middle East. The country's energy freight companies are readying for a potential blockade of the strait. "We're currently taking measures to shorten as much as possible the time spent by our vessels in the Gulf," shipping giant Mitsui OSK told AFP. Others Around 2 million barrels of crude oil passing through the Strait of Hormuz each day in the first quarter were destined for other parts of Asia -- particularly Thailand and the Philippines -- as well as Europe (0.5 million barrels) and the United States (0.4 million barrels). Limited alternatives Asian countries could diversify their oil suppliers, but it is difficult to replace the large volumes coming from the Middle East. In the short term, "elevated global oil inventories, OPEC+'s available spare capacity, and US shale production all could provide some buffer", experts at MUFG Bank said. "However, a full closure of the Hormuz Strait would still impact on the accessibility of a major part of this spare production capacity concentrated in the Persian Gulf," they said. Saudi Arabia and the UAE have infrastructure to bypass the strait, potentially mitigating disruptions, but their transit capacity remains very limited -- around 2.6 million barrels a day. And the Goreh-Jask pipeline built by Iran to export via the Gulf of Oman, which has been inactive since last year, has a maximum capacity of only 300,000 barrels per day, according to the EIA.
Business Standard
18 minutes ago
- Business Standard
Pound plunges to one-month low against dollar; GBPINR edges slightly higher
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Mint
29 minutes ago
- Mint
Mint Primer: Oil shock looms as Iran threatens to shut Strait of Hormuz. What it means for India
Next Story Business News/ Economy / Mint Primer: Oil shock looms as Iran threatens to shut Strait of Hormuz. What it means for India N Madhavan With 40% of its crude imports passing through the key waterway, India faces inflation and growth risks if Iran shuts off the Strait of Hormuz. Roughly one-fifth of daily global crude oil production transits the Strait of Hormuz. (Illustration: Reuters) Gift this article The risk of disruption to the global oil supply has risen sharply after the US bombed Iran's nuclear facilities early on Sunday. The risk of disruption to the global oil supply has risen sharply after the US bombed Iran's nuclear facilities early on Sunday. Mint looks at how prepared India is to deal with this situation as Iran threatens to shut down the Strait of Hormuz. Is an oil shock imminent? Immediately after the US attack on Iran's nuclear facilities in Fordow, Natanz and Isfahan, the Iranian Parliament voted to close the Strait of Hormuz, a narrow waterway that connects Persian Gulf to Gulf of Oman and Arabian Sea. It is through this waterway that a fifth of daily global crude oil production transits. The final decision now rests with Iran's Supreme National Security Council. If the waterway is indeed closed, global oil supply, especially crude produced in West Asia, will be disrupted, likely sending prices sharply higher. Will Iran actually shut the Strait? Historically, Iran has avoided blocking the Strait of Hormuz since 96% of its own oil exports — about 1.5 million barrels per day — pass through it. Shutting it down would cut off a vital revenue stream. But, as experts warn, the situation now is very different. Iran has been weakened militarily. Its proxies — Hamas, Hezbollah, and the Houthis in Yemen — are either finished or on life support. Worse, the survival of the Iranian regime itself may be at stake. Thus, Tehran may now see closing the waterway as its only remaining leverage. How will oil prices react? As markets opened on Monday, the benchmark Brent crude touched a five-month high of $81 per barrel before declining. Experts have forecast that crude oil prices could cross $90 per barrel and perhaps touch $100 if Iran shuts down the Strait of Hormuz. The US has already warned Iran against such action and urged China — whose oil imports heavily rely on Hormuz — to intervene. How will this impact India? Almost 40% of India's crude oil imports, roughly 2 million barrels a day, pass through the Strait of Hormuz. Its closure will cause a supply shock, at least temporarily, till supply is increased from other sources. But the bigger worry is the oil price spike. Crude prices at $100 a barrel for a sustained period of time could stoke inflation, stall the nascent consumption revival, and drag down economic growth. Bank of Baroda Research estimates a 20 basis point downside risk to GDP growth if prices average $80 per barrel this year. How is India preparing to mitigate the impact? India, the third largest oil importing and consuming nation in the world, has been steadily diversifying its source of imports in recent months. Its imports from Russia rose sharply in June to 2.2 million barrels per day. This is almost double the combined imports from Iraq, Saudi Arabia and Kuwait. Imports from the US have also risen while those from West Asia have almost halved. Import from Russia and the US will not be affected by closure of Strait of Hormuz. It can also tap into its strategic oil reserve if there is a shortfall. Topics You May Be Interested In Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.
