US markets see biggest slump since start of US-Israel war on Iran
US equity markets experienced their largest sell-off since the start of the US-Israel conflict with Iran, with the Dow dropping 450 points, the S&P 500 falling 1.7%, and the Nasdaq entering correction territory with a 2.3% decline. Meanwhile, Brent crude surged to approximately $107 a barrel and US crude reached $93, levels last seen during the 2022–2023 Ukraine crisis, pushing US gasoline prices to $3.98 per gallon. Despite mounting geopolitical tensions, former President Trump downplayed the oil price surge, asserting in a cabinet meeting that prices have not increased as much as he anticipated and predicting a future reversal. Conflicting statements from Trump about Iran negotiations have led to market volatility, though the White House announced a 10-day extension on the pause of strikes against Iranian energy infrastructure, signaling some diplomatic progress. The conflict has also triggered inflation concerns, with the OECD forecasting US inflation to average 4.2% in 2026, up from 2.6% in 2025, driven largely by elevated oil prices and their impact on supply chains including fertilizer costs. Precious metals, typically safe havens amid geopolitical and inflationary pressures, may see increased investor interest due to heightened market volatility and inflation fears. Key risks include further escalation in the Middle East and potential disruption to energy supplies. Traders should watch oil prices closely given their inflationary influence and monitor geopolitical headlines for any developments that could drive safe-haven demand or impact risk sentiment. Near-term catalysts include the outcome of ongoing Iran negotiations and updates on the conflict’s impact on energy infrastructure. Broader macroeconomic concerns center on the resilience of global growth under sustained geopolitical stress and inflationary pressure. While gold and silver may benefit from safe-haven flows, uncertainty around US economic performance and policy responses could influence positioning and volatility in precious metals markets.