May 11, 2026
Oil Jumps as US-Iran Talks Stall
Oil prices opened the week sharply higher, with WTI climbing above
101.80 and Brent near 104.40 after President Trump dismissed Iran’s latest counterproposal as “completely unacceptable.” Tehran responded by threatening “immediate retaliation” if the UK and France deploy warships to the Strait of Hormuz.
The risk of prolonged supply disruption has quickly repriced. Just last week, markets were euphoric over a potential MOU. Now, the geopolitical premium is back.
Gold Tumbles Below $4,700 – Not Acting as a Safe Haven
Surprisingly, gold fell nearly 0.5% to $4,693/oz at the Asian open. Why? Because traders fear that higher oil prices will keep inflation sticky, forcing the Fed to maintain a “higher‑for‑longer” stance. Rising real yields hurt non‑yielding assets like gold.
Dollar Steady, Stocks Pause
The US Dollar Index (DXY) edged higher to 98.25 as safe‑haven flows returned. Meanwhile, US equity futures slipped, reflecting caution ahead of Wednesday’s CPI and Thursday’s PPI data later this week.
What to Watch This Week
Oil Jumps as US-Iran Talks Stall
Oil prices opened the week sharply higher, with WTI climbing above
101.80 and Brent near 104.40 after President Trump dismissed Iran’s latest counterproposal as “completely unacceptable.” Tehran responded by threatening “immediate retaliation” if the UK and France deploy warships to the Strait of Hormuz.
The risk of prolonged supply disruption has quickly repriced. Just last week, markets were euphoric over a potential MOU. Now, the geopolitical premium is back.
Gold Tumbles Below $4,700 – Not Acting as a Safe Haven
Surprisingly, gold fell nearly 0.5% to $4,693/oz at the Asian open. Why? Because traders fear that higher oil prices will keep inflation sticky, forcing the Fed to maintain a “higher‑for‑longer” stance. Rising real yields hurt non‑yielding assets like gold.
Dollar Steady, Stocks Pause
The US Dollar Index (DXY) edged higher to 98.25 as safe‑haven flows returned. Meanwhile, US equity futures slipped, reflecting caution ahead of Wednesday’s CPI and Thursday’s PPI data later this week.
What to Watch This Week
- US CPI (Wed) – expected to remain elevated
- US PPI (Thu)
- Fed speakers – any mention of rate cuts
- Geopolitical headlines – any sign of de‑escalation or further escalation
