Oil climbs, gold hits two-month high as Trump adds fresh Iran conditions

Global markets showed mixed reactions on Wednesday as

Global markets showed mixed reactions on Wednesday as US President Donald Trump introduced new demands in his ongoing standoff with Tehran, sending oil prices on a volatile ride and pushing gold to its highest level in two months.

Brent crude initially surged over 2% to briefly trade above $90 per barrel, before paring gains to dip 0.3% to $87.53. The early spike followed an attack on a small cargo vessel in the Bab el-Mandeb Strait by Yemen's Iran-aligned Houthi rebels, which resulted in the deaths of three crew members.

Trump's latest remarks, calling for compensation for damage incurred by the US, add another layer of complexity to the already tense relations between Washington and Tehran. The demand complicates any potential diplomatic resolution and keeps energy traders on edge.

Meanwhile, gold prices climbed to a two-month high

Meanwhile, gold prices climbed to a two-month high as investors sought safe-haven assets amid the geopolitical uncertainty. The precious metal's rally reflects growing concerns about the stability of global supply chains and the potential for further escalation.

Analysts note that while the market's initial reaction to the shipping incident was sharp, the subsequent pullback suggests that traders are weighing the risks carefully. "Any beat is positive, but the scale may not be enough for investors to really get excited about," one market strategist commented.

In other economic news, housing advocates are urging the government to take immediate action to improve access to housing across all tenures. They call for measures to help first-time buyers enter the property market and support the delivery of affordable and social housing for those most in need.

As the day progresses, market participants will monitor

As the day progresses, market participants will monitor any further developments in the Iran situation and their potential impact on energy prices and global financial stability.