Gold, silver climb as Iran’s Hormuz demands rattle markets

Gold and silver prices climbed on Friday as renewed uncertainty over the Strait of Hormuz pushed investors toward safe-haven assets, while equity markets in Asia whipsawed and the euro weakened against the U.S. dollar.

Precious Metals Rally on Geopolitical Risk

On the Comex CME Group Inc. ↗ 1.34%, gold was trading near $4,320 per ounce, while silver rose to around $62.50 per ounce — a gain of roughly 1% and 2%, respectively. On India's Multi Commodity Exchange, gold futures rose ₹497 to trade near ₹1,49,450 per 10 gram, and silver futures jumped ₹2,157 to around ₹2,28,000 per kg.business-standard

The rally came as Iran's parliament reviewed a plan to ban ships linked to the U.S., Israel, and other countries it deems hostile from transiting the Strait of Hormuz until Tehran receives compensation for war damage, according to NPR, citing Iranian state media. The proposal would impose fees of up to 7% of cargo value on commercial vessels passing through the waterway.npr

The moves followed days of intense diplomacy. On Tuesday, President Trump said the U.S. was having "very good discussions" with Iran, fueling expectations of an imminent deal to reopen the strait. The Associated Press reported that a possible agreement would route ships entering the Persian Gulf through an Iranian-controlled lane and outbound traffic through an Omani-controlled lane. But Iran reportedly now plans to deny access to U.S. and Israeli vessels and demand compensation from hostile nations before granting passage — a hardening of its position that rattled markets.yna+2

Asian Equities and Currencies Swing

Seoul's KOSPI reflected the volatility. After opening more than 1% higher on Friday, the index reversed course and fell 0.57% to 6,260.31 by late morning, following a 4.58% plunge the previous session. SK Hynix ↘ 3.12% fell 4%, while defense stocks including Hanwha Aerospace climbed 1.8%.yna

The euro slipped against the U.S. dollar as investors sought safety in the greenback, a traditional haven during geopolitical turmoil. The EUR/USD pair weakened amid broader dollar strength supported by expectations that the Federal Reserve may keep interest rates elevated.bitcoinworld

A Crisis Five Months in the Making

The Strait of Hormuz has been largely blocked by Iran since February 28, when the U.S. and Israel launched joint military operations against Tehran. A temporary memorandum of understanding signed in mid-June to stop the war and reopen the strait broke down weeks later amid renewed strikes. Turkey's foreign minister said Thursday that a temporary agreement could be announced soon, but until clarity emerges, markets appear poised to price in continued risk.wikipedia+1