Gold Continues to See Volatile Moves

BREAKING: Two missiles hit a US warship near Jask Island after it ignored Iran's warnings - Iran's Fars News Agency Iran's new Hormuz ‘control zone’ stretches to Fujairah - Tasnim Two missiles hit a US warship near Jask Island after it ignored Iran's warnings - Fars Iran’s Fars News Agency reports that two missiles struck a US warship near Jask Island after it allegedly ignored repeated warnings to exit Iranian territorial waters. The incident marks a fracture in the fragile ceasefire that has been in place since early April and occurs just as the Trump administration launched Operation Project Freedom. The strike near Jask Island follows weeks of escalating rhetoric since the failure of the Islamabad peace talks. Iran's Revolutionary Guards warned that coastal defense batteries remain on high alert to target any ship attempting to bypass Iranian checkpoints without authorization. Oil prices jumped and US futures dropped as the risk sentiment turned negative on this latest escalation. IRANIAN NAVY CLAIMS THEY STOPPED U.S. WARSHIPS FROM ENTERING THE STRAIT OF HORMUZ, ACCORDING TO STATE TELEVISION.

Senior U.S. official denies a U.S. ship was hit by Iranian missiles Senior US official denies a US ship was hit by Iranian missiles - Axios Global Affairs Correspondent for Axios, Barack Ravid, said on X that a senior US official denied Iranian missiles hit a US warship. This has triggered a quick reversal in earlier moves after Fars News Agency reported that two missiles struck a US warship near Jask Island after it allegedly ignored repeated warnings to exit Iranian territorial waters. We are likely to get more of such conflicting reports in the next days as tensions in the Strait of Hormuz remain high. This should keep oil prices elevated and risk sentiment a bit more in check as things could escalate very quickly. For now, US stocks are ignoring these risks on expectations that eventually the Strait of Hormuz will be reopened, but the longer this stalemate drags on, the higher the risk that the Fed would need to adopt a tightening bias.