Gold Surges, Oil Drops Following US-Iran Peace Deal

Gold prices surged while global oil prices fell sharply on Sunday night into Monday morning following the announcement of a deal to end the conflict between the United States and Iran, mediated by Pakistan. Brent crude futures, which had been trading above 87 dollars per barrel, dropped below the 84 dollar level. By 22:22 GMT, Brent was down around 4 percent compared to the previous day after news emerged of the planned agreement between Washington and Tehran, scheduled to be signed on Friday after more than three months of conflict. On the other side, gold prices rose more than 1 percent on Monday after US and Iranian officials stated they had reached a deal to end their conflict. The agreement pressured oil prices and eased market concerns over inflation and potential interest rate rises. Spot gold climbed 1.8 percent to 4,297.42 dollars per ounce, its highest level since 9 June, while US gold futures for August delivery strengthened 1.9 percent to 4,318.10 dollars per ounce. Pakistani Prime Minister Shehbaz Sharif announced on Monday morning that the United States and Iran had reached an agreement following intensive negotiations. Sharif said both parties agreed to an immediate and permanent cessation of military operations on all fronts, including Lebanon. The official signing ceremony is scheduled to take place on 19 June in Switzerland.