Geopolitical Tensions Heighten Risk Aversion

Escalating geopolitical tensions, including renewed conflict between the US and Iran in the Strait of Hormuz and ongoing attacks in the Sea of Azov, have rattled market sentiment. The heightened uncertainty is driving a risk-off mood, reflected in falling US stock market futures, even as diplomatic mediation efforts between Washington and Tehran reportedly continue.

Oil Prices Climb on Middle East Supply Risks

Crude oil prices have rebounded as markets price in renewed risks to key supply routes, particularly around the Strait of Hormuz, following the apparent breakdown of a US-Iran understanding. The rally has pushed Brent crude to test significant technical resistance levels, with analysts highlighting the strategic shift toward escorted energy flows through the region.

US Dollar Strengthens on Safe-Haven Flows and Fed Outlook

The US Dollar gained support from safe-haven demand, with analysts noting that higher energy prices and tensions in the Gulf could reinforce the case for Federal Reserve policy tightening. While the US Dollar Index faced some intraday selling, the greenback's strength was underpinned by its role as a primary safe-haven asset and the relative energy independence of the US.

Silver Prices Fall Amid Macro Headwinds

Silver prices declined during Monday's session despite the broader risk-off environment that typically supports safe-haven assets. The move lower for the precious metal occurred alongside a strengthening US Dollar, which generally creates a headwind for commodities priced in the currency.