Oil & Gold Rally on Middle East Tensions; EUR/USD Tests 1.0900

Gold surged 2.1% to $2,390 and WTI crude oil jumped 4.2% to $88.50 as Middle East tensions between Israel and Iran intensified ahead of European trading. Safe-haven demand has accelerated with reports of increased military movements, prompting traders to seek refuge in traditional defensive assets. The risk-off sentiment has weakened the US dollar across the board, with EUR/USD climbing 0.5% to test the 1.0900 psychological resistance level. Asian equity markets fell sharply, with the Nikkei down 1.8%, further supporting haven flows into gold and the Japanese yen. Oil's spike reflects immediate supply disruption concerns, as the region accounts for approximately 30% of global crude production. Technical indicators suggest both commodities remain in strong uptrends, with gold eyeing $2,400 and oil targeting $90. Currency traders should prepare for heightened volatility during the European session, with further geopolitical developments likely to drive sharp directional moves.