Iran Conflict Sparks Surge in Gold and Oil Prices – Will Gas Be the Next to Soar?

Prices for Gold and Oil Surging Following U.S. and Israel Attacks on Iran

Prices for gold and oil are surging following U.S. and Israel attacks on Iran over the weekend. Extending a trend that began in late 2025, investors continued to abandon higher-risk assets in favor of safety as hostilities in the Middle East entered their third day.

Stocks Were in Retreat

Stocks were in retreat on Monday. All three major indices slid when the market opened, and with no clarity over the Iran conflict’s timeline, commodities could continue to outperform as uncertainty — a familiar theme since the start of President Donald Trump’s second term — grips global markets.

What to Know About the War’s Effect on Gold, Oil, and Gas Prices

Here’s what you need to know about the war’s affect on gold, oil and gas prices so far.

Strikes in Iran Send Oil Prices Sky-High, with Gas to Follow

At press time, Brent crude — the global oil benchmark — was trading for $78.44 per barrel. That marks a one-year high and a nearly 41% increase over the price per barrel on Dec. 16, when oil was trading at its one-year low.

Consequences of the Oil Price Surge

The major catalyst behind oil’s rallying prices is Iran’s threat to close the Strait of Hormuz, a roughly 90-mile long, narrow maritime choke point connecting the Persian Gulf with the Gulf of Oman. According to the U.S. Energy Information Agency, approximately 20 million barrels of oil — the equivalent of about 20% of total global petroleum consumption — is shipped through the strait daily.

Gold Price Rises

That turbulence has spilled into other commodity markets and is also bolstering the price of gold. When trading resumed on Monday, the precious metal jumped 1% to $5,333 per troy ounce, less than 5% off the all-time high gold hit in January.

Gas Prices May Follow Suit

On the consumer side, the war between Iran and Israel and the U.S. could affect prices at the pump. Retail gas prices lag the price of oil, but Patrick De Haan, head of petroleum analysis at GasBuddy, posted on X that “the national average is now up to $2.96/gal,” adding that he believes prices may touch $3 per gallon soon “as the jump in prices begins to show up at more stations.”
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