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Investors remain wary, as the Wall Street Journal report came on the same day the US president threatened to destroy Iran’s key oil export hub and desalination plants unless it accepts a deal, while also suggesting that diplomacy was making progress.

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The news comes as governments around the world scramble to implement measures to ease the burden of surging fuel prices while also seeking to conserve energy, with around one-fifth of global crude oil and gas passing through the waterway.

The Wall Street Journal, citing administration officials, said Trump and his aides had concluded that a mission to reopen the waterway would extend beyond his four- to six-week timeline. It added that he had decided to focus on targeting Iran’s missiles and navy, before seeking to pressure the country diplomatically to reopen the Strait.

Further fuelling concerns, a drone struck a Kuwaiti oil tanker in Dubai waters, causing a fire on Tuesday morning. Dubai authorities said the blaze had already been extinguished, but concerns about a potential oil spill remain.

Maritime traffic disruptions in the Strait of Hormuz, through which roughly a fifth of the world’s oil normally passes, remain a key pressure point for global energy supplies. US Secretary of State Marco Rubio said Trump has “options available” in response to Tehran’s threats to control the strait, after Iran was reported to have effectively created a “toll booth” there.

Both major oil benchmarks fell on Tuesday, though West Texas Intermediate and Brent crude remained well above $100 a barrel. At 7 a.m. CET, the international benchmark Brent was trading at nearly $113, while WTI crude was above $102 a barrel.

Most equity markets in Asia rose briefly, but by this point Tokyo’s Nikkei 225 was down 1.3%, South Korea’s Kospi had fallen 3.3%, Hong Kong’s Hang Seng had shed 0.5%, and the Shanghai Composite index was down 0.4%.

US futures were up between 0.6% and 0.8%.

In other early Tuesday trading, gold and silver prices rose. Gold was up 0.7% at $4,587.80 an ounce, while silver climbed 2.4% to $72.25 per ounce.

The US dollar stood at 159.61 Japanese yen, down from 159.71 yen. The euro was trading at $1.1472, up from $1.1465.

Digital asset investment products saw outflows for the first time in five weeks, recording ~$414M, with total AuM falling to ~$129B. This flip from inflows to outflows reflected growing caution among investors due to the ongoing Iran conflict, as it could lead to higher inflation, reported by

Published on
30/03/2026 – 11:15 GMT+2

It is an old market saying, but it has never felt more apt: when people are worried about the future, they buy gold — when they are worried about the present, they sell it.

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While the Iran war has raised longer-term concerns over energy security and global stability, the immediate fallout, in the form of surging oil prices and renewed inflation fears, has forced investors to prioritise liquidity and higher-yielding assets over metals.

Gold hit an all-time high of $5,602 (€4,873) at the end of January and looked to be heading higher still in early March, but has since dropped nearly 25% to a low of $4,100 (€3,567), trading around $4,500 (€3,915) at the time of writing.

The decline marks a dramatic pullback from gold’s extraordinary performance last year.

In 2025, the metal delivered one of its best annual gains in decades, rising more than 60% to record levels as central banks accumulated reserves and investors sought protection amid economic uncertainty.

The drop in 2026 has triggered a swift unwinding of leveraged positions in futures and exchange-traded funds which were riding last year’s tremendous rise.

This sharp reversal defies the traditional role of the metal as a refuge during geopolitical turmoil, with a stronger US dollar and rising bond yields proving far more influential.

Macroeconomic forces override safe-haven appeal

Rising US Treasury yields and a firmer US dollar have been the dominant headwinds for precious metals.

Higher oil prices stemming from the Iran war have lifted inflation expectations, prompting markets to price in fewer Federal Reserve rate cuts or even the possibility of tighter policy for longer, including potential hikes that were previously unexpected.

This has increased the opportunity cost of holding non-yielding gold, while the US dollar’s strength has made it more expensive for international buyers.

The result has been a classic “flight to liquidity” rather than the expected flight to quality risk assets, as leveraged traders facing margin calls accelerated the sell-off.

The correction for metals has been one of the sharpest in recent memory.

Silver shares in gold’s downturn

Silver, which often amplifies gold’s moves, followed with an even bigger drop.

The white metal reached an all time high of $121 just one day after gold, on 29 January, but it has since dropped roughly 50% to as low as $61.

At the time of writing, it is trading at around $70.

Silver enjoyed an even more spectacular rally than gold in 2025, surging roughly 145% thanks to robust industrial demand from solar panels, electronics and electric vehicles, combined with investment buying.

In 2026, however, it has also declined sharply amid the same pressures of US dollar strength and higher yields, although its industrial fundamentals continue to offer longer-term support.

Published on 30/03/2026 – 7:07 GMT+2•Updated
8:29

European markets are set to open lower on Monday, with futures pointing to declines across major indices as investor sentiment remains cautious amid rising oil prices and geopolitical tensions in the Middle East.

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As of early morning trading, Germany’s DAX was down around 0.5%, the FTSE 100 fell roughly 0.3%, and France’s CAC 40 was also in negative territory, according to IG data.

The weaker outlook follows losses in Asia, where shares mostly dipped overnight as concerns persisted around soaring oil prices and the potential for further escalation in the US war with Iran.

The declines follow steep losses on Wall Street on Friday, marking a fifth consecutive losing week — the longest such streak in nearly four years.

“US equity markets remained under sustained pressure, with the S&P 500 falling 2.1% for the week and the Nasdaq 100 sliding 3.2%. The Dow Jones held up comparatively better, declining 0.9%, owing to its lower technology weighting. Both the Nasdaq 100 and the Dow Jones have now officially entered correction territory after recording drawdowns of more than 10% below their respective peaks,” IG market analyst Fabien Yip said in a commentary note.

Asia-Pacific markets lower overnight

Japan’s benchmark Nikkei 225 fell 4.5% in early trading, Australia’s S&P/ASX 200 dropped 1.2%, and South Korea’s Kospi slid 3.2%. Hong Kong’s Hang Seng declined 1.7%, while the Shanghai Composite edged 0.7% lower.

Investor worries have been particularly acute due to the risk of disrupted access to the Strait of Hormuz, a critical route for global oil shipments.

Benchmark Brent crude rose above $116 a barrel in early trading, marking an increase of more than 50% since the Iran conflict began on 28 February. Prices were just over $70 a barrel when the war started. US benchmark crude was also up, at around $101 a barrel, reflecting continued volatility in global energy markets.

The surge comes as US President Donald Trump raised the possibility of American forces seizing Iran’s Kharg Island, the country’s main oil terminal in the Persian Gulf. He made the comment in an interview published early Monday by the Financial Times.

“Maybe we take Kharg Island, maybe we don’t. We have a lot of options,” Trump told the newspaper. “It would also mean we had to be there (on Kharg Island) for a while.”

Asked about Iranian defences there, he said: “I don’t think they have any defence. We could take it very easily.”

The US has already launched airstrikes it said targeted military positions on the island. Iran has threatened to launch its own ground invasion of Gulf Arab countries and new attacks if US troops land on its territory.

Meanwhile, G7 finance ministers, energy ministers and central bank governors are set to hold an emergency meeting today to discuss the conflict and its consequences. It will mark the fourth time since the start of the war in Iran the G7 has convened at a ministerial level.

As emerging markets head toward their weakest month in years, some asset managers are moving in the opposite direction and adding to positions.

Firms including TT International and AllianceBernstein are buying beaten-down bonds and currencies, betting that central banks will shift