Oil prices climb after Trump dismisses Iran’s response to peace plan

Oil jumped as much as 4% to $105.50/bbl before settling at $103.50 after Trump called Iran’s response to a US peace proposal “totally unacceptable,” keeping the Strait of Hormuz effectively closed and reinforcing fears of prolonged supply disruption. The move extends a commodity shock that is feeding through to inflation expectations and bond yields, with UK 30-year gilts up 7bp to 5.64% and 10-year yields up 5bp to 4.96% on the day. The article frames the oil spike as a risk that could keep broader input costs elevated for longer, which matters for precious metals mainly through the inflation/rates channel rather than direct PM flows. Susannah Streeter of Wealth Club said severe supply constraints are likely to continue, with consumers, companies and countries adapting to a world of constrained supply after 11 weeks of crisis. For gold, the near-term implication is a mixed macro setup: higher inflation expectations can underpin haven demand, but firmer yields can cap non-yielding assets if rate-cut expectations are pushed back. Key catalysts are any further escalation around the Hormuz corridor, central-bank reaction to the inflation impulse, and whether oil holds above $100/bbl or retraces sharply.