Crude Oil Rises Near $97 As Middle East Tensions Raise Supply Risks, Gold Steady Near $4,400

Mumbai | 8 September 2026 

Commodity markets traded mixed on Tuesday, September 8, 2026, with oil prices extending gains as tensions in the Middle East escalated, while gold held steady as traders weighed geopolitical risk against a weaker US dollar. Brent crude futures climbed 34 cents, or 0.35%, to $97.34 a barrel, while US West Texas Intermediate (WTI) crude rose $1.15, or 1.26%, to $92.63 a barrel. 

Why Are Oil Prices Rising? 

Oil prices extended gains after Iran threatened to retaliate against any new US attacks on its assets, heightening fears of a prolonged conflict in the Middle East and worries over supply disruption. Renewed clashes between the US and Iran in the Strait of Hormuz, a key artery for global crude shipments, have raised oil prices and heightened inflationary concerns. Brent crude rose to its highest level since July 24 in the previous session, as traders continued to build a risk premium into prices amid the heightened tensions. 

How Is Gold Trading Amid The Tensions? 

Gold prices are trading in a narrow range near $4,400 an ounce, caught between conflicting forces. Stronger than expected US jobs data has raised the probability of the Federal Reserve keeping monetary policy tight, which pressures gold since the metal pays no interest and becomes less attractive when rates are high. At the same time, safe-haven demand driven by tensions in the Middle East, particularly around transit security in the Strait of Hormuz, has provided a floor under prices, preventing a sharper fall. Bullion was little changed in early trading on September 8, after giving up 1.5% over the previous two sessions. 

How Did August’s Jobs Data Shape Rate Expectations? 

US nonfarm payrolls rose by 162,000 in August, more than double the 65,000 jobs economists had forecast, while the unemployment rate held at 4.1%, against expectations of a rise to 4.2%, according to Bureau of Labor Statistics data released on Friday, 4 September. The gains were the strongest since March. Markets are pricing in a roughly 60% probability of a Federal Reserve interest rate hike at the central bank’s September 15-16 meeting. Investors are now also watching the upcoming US Consumer Price Index (CPI) and Producer Price Index (PPI) releases later this week, which will shape the Fed’s next move. 

How Did Other Precious Metals And Currencies Move? 

Among other precious metals, silver gained 0.1% to $66.22 an ounce, platinum was little changed and palladium rose. The dollar index, which measures the US currency against a basket of currencies, was a touch weaker at 98.83 amid yen strength. The euro and sterling both firmed 0.06%, last trading at $1.1628 and $1.3549 respectively. 

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