---
title: 'Oil Surges 25%, Gold Slides as Iran War Rocks Global Markets'
url: 'https://thediplomaticinsight.com/oil-surges-25-gold-slides-iran-war-rocks-markets/'
author: 'News Desk'
date: '2026-03-09T16:24:42+05:00'
categories:
  - 'Economy'
---

# Oil Surges 25%, Gold Slides as Iran War Rocks Global Markets

**Islamabad (TDI):** Oil prices surged about 25% on Monday, reaching levels not seen since mid-2022, as escalating conflict between the US-Israel alliance and Iran intensified fears of energy supply disruptions.

Brent crude hit $119.50 per barrel, while US West Texas Intermediate (WTI) reached $119.48, putting Brent on track for a record one-day percentage gain.

The spike in crude also lifted agricultural commodities, particularly edible oils used in biofuels. Malaysian palm oil rose 9%, and Chicago soybean oil hit its highest level since late 2022.

Wheat prices climbed to levels last seen in June 2024, and corn reached a 10-month high. Analysts attributed the gains to reduced oil output from major Middle Eastern producers, including Iraq, Kuwait, and the UAE, as well as shipping risks through the Strait of Hormuz.

**Read More: [Trump, UAE President Discuss Security Amid Iranian Strikes Across Gulf](https://thediplomaticinsight.com/trump-uae-president-discuss-security-iranian-strikes/)**

Gold fell more than 2% as a stronger US dollar weighed on bullion, making it costlier for holders of other currencies. Rising energy prices also fueled inflation concerns and dimmed expectations for near-term interest-rate cuts, contributing to weaker safe-haven demand.

Aluminium prices jumped to a four-year high, with three-month LME contracts reaching $3,544 per ton. Supply disruptions in the region prompted Qatari smelter Qatalum and Aluminium Bahrain to declare force majeure, while other base metals faced headwinds from a stronger dollar.

**Read More: [Mojtaba Khamenei: Iran’s New Hardline Supreme Leader](https://thediplomaticinsight.com/mojtaba-khamenei-irans-new-supreme-leader/)**

The market turbulence comes as Iran officially named Mojtaba Khamenei to succeed his father, Ayatollah Ali Khamenei, further entrenching hardliners amid the ongoing conflict.