U.S. President Donald Trump has paused military strikes against Iran for a third consecutive night, a move that has triggered a sharp decline in oil prices and a rise in gold values. According to Reuters, the president held off on fresh attacks in hopes of securing a swift deal.
U.S. Pauses Iran Strikes Amid Diplomatic Push
Trump announced on his Truth Social platform late Saturday that Middle Eastern countries and Iran had requested time to finalize an agreement. This potential deal would aim to end Iran’s nuclear threat and result in the Immediate, Complete and Total
reopening of the Strait of Hormuz.
The decision to hold fire followed advice from top military officials. Adm. Bradley Cooper, the top U.S. military commander in the region, informed Trump that the bombing campaign had reached the limits of its effectiveness
after nearly exhausting the developed target list for Iran, as reported by Axios, according to Investing.com.
Despite the pause, UN ambassador Mike Waltz stated on NBC’s Meet the Press that Trump is not ruling out further strikes and is keeping all options on the table.
Market Volatility and Commodity Shifts
The diplomatic shift led to an immediate reaction in global commodity markets on Monday. Oil prices fell sharply, with Brent dropping 5.9% to $84.05 a barrel and WTI falling 5.1% to $87.02.
Conversely, gold prices rose as the pause eased concerns that war-driven inflation would lead central banks to increase interest rates. Spot gold climbed 0.7% to $4,067.06 per ounce, while U.S. gold futures rose 0.9% to $4,065.60. Other precious metals also saw gains:
- Spot silver: Up 0.7% to $58.02 per ounce
- Platinum: Up 0.7% to $1,653.78
- Palladium: Up 1.5% to $1,293.00
The rise in gold is notable because the metal typically loses appeal in high-interest-rate environments since it does not yield interest. This comes as three Federal Reserve officials who dissented at a recent policy meeting expressed concern Friday that inflation remains stuck above the 2% target.
Regional Tensions and Military Standoff
While the U.S. has paused its campaign, other regional flashpoints remain active. Saudi Arabia’s Ministry of Defense reported that its air defenses intercepted and destroyed several drones targeting Riyadh and oil facilities in the Eastern Province.
In Iran, army spokesperson Mohammad Akraminia stated Sunday that Tehran has also halted its “retaliatory” operations against U.S. allies, noting that these attacks had continued until two nights prior.
Tensions persist in the Strait of Hormuz. The Iranian state broadcaster IRIB reported that early Monday, Iranian forces intercepted six ships that had disabled their navigation systems while attempting to use an illegal and unsafe
route in the southern Strait. IRIB claimed the vessels were provoked by the US military,
though this claim was not independently verified. One vessel reportedly suffered an accident during the encounter.
Diplomatic Efforts and Political Outlook
Diplomatic activity is intensifying as the U.S. seeks a deal that ensures Iran does not obtain nuclear weapons. Israeli Prime Minister Benjamin Netanyahu has departed for Washington to meet with Trump on Tuesday; this will be their seventh meeting since January 2025.
Regarding the ongoing negotiations, Iran’s Ministry of Foreign Affairs spokesperson Esmail Baghai previously confirmed that discussions with Washington were being conducted through a mediator from Pakistan.
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