Trump Threatens Military Action as Oil Prices Surge

President Donald Trump promised "major military punishment" for Iran and its Houthi allies after Yemen-based fighters attacked two Saudi oil tankers in the Red Sea. The maritime strikes caused Brent crude oil to surge above $100 per barrel for the first time since May, sparking concerns over inflation.

Simultaneously, the U.S. government implemented new import duties of 10% to 12.5% on most major trading partners, citing the use of forced labor in global supply chains. These protectionist policies, combined with rising energy costs, strengthened the U.S. dollar and increased Treasury yields.

Market volatility led to a decline in gold prices, which traded around $4,042 to $4,050 per ounce. The price shift reflects growing expectations that the United States Federal Reserve may raise interest rates in September to combat inflation. While the European Central Bank maintained current rates, it remained open to a potential increase in September.