Iran War Sends Gold and Oil Prices Soaring. Is Gas Next?

The recent U.S. and Israel attacks on Iran have caused prices for gold and oil to surge, as investors seek safety amidst growing tensions in the Middle East. This trend, which began in late 2025, has seen a shift towards higher-risk assets as uncertainty grips global markets.

Stocks took a hit on Monday, with all three major indices sliding at the market open. With no clear resolution in sight for the Iran conflict, commodities like gold and oil are likely to continue outperforming other assets.

Oil prices have skyrocketed following the attacks, with Brent crude trading at $78.44 per barrel – a one-year high. West Texas Intermediate prices have also surged to $71.14 per barrel, marking a significant increase since December. The threat of Iran closing the Strait of Hormuz, a crucial maritime chokepoint for oil transportation, has been a major driver behind these price hikes.

On the consumer front, gas prices are expected to rise as well. Retail gas prices typically lag behind oil prices, but the national average is already up to $2.96 per gallon. Analysts predict that prices could reach $3 per gallon as the impact of higher oil prices trickles down to the pump.

Gold prices have also seen a significant uptick, jumping 1% to $5,333 per troy ounce on Monday. As a traditional safe-haven asset, gold tends to perform well during times of geopolitical unrest. While short-term volatility can lead to fluctuations in gold prices, recent events have shown limited and short-lived impacts on the market.

Overall, the ongoing conflict between Iran, Israel, and the U.S. is likely to continue driving prices for gold and oil in the coming days and weeks. Investors are advised to stay cautious and monitor market developments closely.