Market Insights

The war in Iran has heightened uncertainty in the global economy, with hostilities materially disrupting global trade, energy flows, and capital allocations. These effects have been particularly evident in commodity markets. Oil prices surged sharply, while gold prices declined, an unusual relationship that may reflect sovereign nations liquidating gold to finance rising energy costs. 

Recent geopolitical developments in the Middle East have unsettled global markets, particularly energy markets. A series of attacks against key US and Israeli sites, following earlier strikes on Iran that killed several senior leaders, effectively halted marine transportation through the Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Gulf of Oman along Iran’s southern coast.

The start of 2026 has seen a dramatic shift in the geopolitical landscape following the US. The early weeks of 2026 have seen unusually strong demand for gold and other physical metals as investors respond to a weakening US dollar and heightened global uncertainty. Gold has advanced steadily, while silver, supported by its essential role in electronics, semiconductors, and medical technologies, has risen sharply over the past year.