Oil prices jumped more than 4% on Monday, while gold prices slid, as the United States and Iran exchanged attacks, escalating geopolitical tensions in the Middle East. The moves came after reports of airstrikes and retaliatory actions between the two countries, though specific details remain unconfirmed.
Government bond yields also rose, with the UK's 10-year gilt yield increasing by 4 basis points to 4.91%, effectively raising the cost of borrowing for the UK government. The FTSE 100 index was slightly higher in early trading, reflecting mixed investor sentiment amid the geopolitical uncertainty.
Analysts noted that the oil price surge reflects fears of supply disruptions from the region, while gold's decline may be due to profit-taking or shifting safe-haven demand. The situation remains fluid, with markets closely watching for further developments.
