Oil up 7%, gold 2% as Iran strife enters third day

Oil prices surged early on Monday as the Iran conflict entered its third day amid damage to tankers, increasing fears of supply disruption.

Crude prices jumped 7 percent as futures trading opened following US-Israeli strikes that killed Iran’s supreme leader, Ali Khamenei, on Saturday. 

Brent crude futures briefly moved above $82 per barrel but later eased to $76.70, up 5 percent.

US West Texas Intermediate crude was up 7 percent at $71.68 a barrel after opening at $75.33, its highest since June.

Missiles hit at least three tankers off the Gulf coast and killed one seafarer, shipping sources and officials told Reuters.

Melbourne-based ANZ Bank analyst Daniel Hyne said he expected tanker attacks significantly to raise supply risks, while Citi forecast Brent to trade between $80 and $90 this week. Growing risks have forced more than 200 vessels to anchor near the Strait of Hormuz following Iranian threats, Reuters reported.

More on the Iran conflict

• Uncertainty grips Gulf as Iran conflict hits home
• Iran claims Hormuz closure, stoking oil and shipping risk
• Middle East airspace shutdown grounds thousands of flights

About 20 percent of global oil supplies transit through the strait. The channel marks the entrance to the Gulf and is bordered by Iran to the north and Oman’s Musandam peninsula to the south. At its narrowest point, the strait is about 21 miles (34km) wide, although navigable shipping lanes are only 3km across.

The eight Opec+ members – which include Saudi Arabia, Iraq, UAE, Kuwait and Oman – on Sunday said they would raise production by a combined 206,000 barrels per day in April as part of the unwinding of previous output cuts. 

US President Donald Trump said on Sunday that Iran’s new leadership wants to talk to him and that he has agreed, according to The Atlantic magazine.

Spot gold prices jumped almost 2 percent to $5,368 per ounce, reaching the highest level in more than four weeks. Gold futures were up 3 percent at $5,383 an ounce.

The rally builds on gold’s 64 percent increase in 2025, fuelled by geopolitical tensions and strong central bank buying.