Oil prices surged around 25% on Monday to their highest since mid-2022, with Brent on track for a record one-day gain, while gold fell 2% as an escalating Iran war squeezed world energy supplies, boosted the dollar and dampened hopes of interest-rate cuts. Agriculture markets, led by edible oils, rose as they took their cue from oil prices due to the extensive use of vegetable oils in making biofuels. Aluminium firmed on supply worries even as other metals faced headwinds from a stronger dollar. “The violent reaction stems from the markets seeing no obvious offramp in the escalating Middle East conflict, now a high-stakes standoff where neither side appears willing to blink first,” Tony Sycamore, IG market analyst, said in a note. “The risk of more lasting economic damage continues to build by the day.”

Full report : Oil soars 25%, gold drops as Iran war jolts global commodity markets.