Oil higher on resumption of US blockade

Equities have remained remarkably sanguine about a return to the US blockade of Iran, but oil has made gains, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Blockade return perks up oil prices

The US’ apparent decision to pile on the pressure on Iran by reinstating the blockade has lifted oil prices, though the reaction remains calm relative to the potential for supply disruption. Markets seem to be pricing in a resumption of negotiations in due course, given the lack of appetite for an extended standoff, but with oil stockpiles not fully rebuilt this is a risky view to take. This limited exchange of projectiles is still nowhere near the intensity of March’s conflict, leaving hope for a relatively quick resolution.

Gold and silver fall further

Equities may not have suffered particularly today, but gold and silver have taken heavier losses as investors continue to cut back positions in precious metals. The lows of late June remain untested in both cases for now, but an intensification of the bear market here is likely to see a further crystallisation of losses, marking a dramatic turnaround from the euphoria seen at the opening of 2026.