Gold Drops 1.1% Below $4,500 as US Strikes Threaten Iran Hormuz Talks
Updated
Updated · Bloomberg · May 26
Gold Drops 1.1% Below $4,500 as US Strikes Threaten Iran Hormuz Talks
3 articles · Updated · Bloomberg · May 26
Bullion slid as much as 1.1% after US forces struck missile launch sites in Iran and boats allegedly trying to place mines in the Strait of Hormuz.
Prices traded just above $4,500 an ounce as the strikes weakened optimism that talks could reopen the critical waterway, keeping supply and inflation risks in focus.
US Central Command said the action was defensive and aimed at protecting American troops from threats posed by Iranian forces.
The move extends an earlier selloff in gold, with renewed US-Iran tensions and higher oil prices already clouding the interest-rate outlook and pressuring the metal.
With peace talks ongoing, why does the U.S. continue military strikes in Iran? What is the endgame?
Even with a peace deal, can global supply chains and energy markets ever fully recover from the conflict?
Why does J.P. Morgan forecast a 2026 oil price drop amid a conflict causing prices to spike?
U.S.-Iran Tensions in 2026: Oil Above $100, Gold Slips, and the Threat of Global Stagflation
Overview
U.S.-Iran tensions escalated sharply after the United States launched defensive strikes in southern Iran on May 26, 2026, targeting boats and missile sites. This immediate escalation sent shockwaves through global markets: oil prices surged in early Asian trading, while gold prices slipped, with spot gold dropping 0.5% to $4,545.90 an ounce. The heightened geopolitical risks from these strikes contrasted with gold’s strong performance last year, when it rose 65%. Now, instead of seeking gold as a safe haven, investors are shifting toward energy commodities, highlighting how the conflict is reshaping traditional market responses.