Published on 6/23/2026
Oil prices fell 4% today, Monday, and gold and the dollar exchange rate rose, after US Vice President J.D. Vance said that progress had been made in the talks with Iran, and that the Strait of Hormuz was open.
Reuters reported that Vance said that talks with Iranian officials in Switzerland led to the establishment of a “solid foundation” for a final peace agreement, despite the tension related to the Strait of Hormuz and Lebanon.
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Mediators said, according to Reuters, that American and Iranian officials made “encouraging progress” during the first round of negotiations held in Switzerland and ended early Monday.
Brent crude fell $3.18, or 3.95%, to $77.39 per barrel by 1544 GMT. Prices rose to $82.30 at the beginning of trading due to threats from US President Donald Trump to resume the war on Iran and Tehran’s announcement to close the Strait of Hormuz again.
US West Texas Intermediate crude futures fell $2.15 to $74.45 per barrel before trading on the contract ended later Monday. The most widely traded August contract fell by $2.49, or 3.28%, to $73.36 per barrel.
The negotiations began on Sunday according to a memorandum of understanding reached last week, which stipulates the extension of the fragile ceasefire, which has been in effect since April, for at least an additional 60 days.
Gold is rising
In this context, gold rose by about 1% on Monday, recovering from its lowest level in more than a week, which it recorded in the previous session, as the progress made in negotiations between the United States and Iran contributed to putting pressure on oil prices, which reduced some concerns related to inflation, and the possible subsequent increase in interest rates.
By 1400 GMT, gold in instant transactions rose 0.9% to $4,199.07 per ounce, after falling on Friday to the lowest level since June 11.
“Energy prices will remain a key driver in the short term for the precious metals sector,” Saxo Bank analyst Ole Hansen told Reuters.
He added, “We are witnessing the continuation of faltering negotiations in Switzerland between the United States and Iran, which still indicate reaching an agreement that would add new barrels of crude oil to the market,” which puts pressure on crude oil prices and helps gold.
According to the CME Group’s “Fed Watch” tool, traders believe that there is an 89% chance of raising interest rates next December, compared to 61% before the US Federal Reserve (central bank) meeting headed by Kevin Warsh, which decided to stabilize the interest rate.
Despite gold’s status as a hedge against inflation, it tends to lose its appeal when interest rates on US Treasury bonds rise, as demand for gold, which does not return a return, declines, and investors prefer to buy bonds.
As for other precious metals, silver rose in spot transactions by 2.4% to $66.46 per ounce, platinum increased by 1.7% to $1,691.54, and palladium rose by 1% to $1,271.25.
In a related context, the dollar rose on Monday, supported by investor optimism about the possibility of reaching an agreement following the first round of talks between the United States and Iran, while the pound sterling rose in volatile trading after British Prime Minister Keir Starmer announced his intention to submit his resignation.
The dollar index, which measures the performance of the US currency against other major currencies, rose 0.06% to 100.90 points, and the euro fell 0.24% to $1.1444.
The pound sterling rebounded from its lowest level during the session, recording $1.318, after Labor Party leader Keir Starmer announced his intention to resign, paving the way for his rival Andy Burnham to assume the position of Prime Minister, making him the seventh for Britain during the ten years that followed the vote in favor of its exit from the European Union.
The pound sterling rose to its exchange rate of 1.32 against the dollar, and 1.15 against the euro, according to the British newspaper, the Financial Times.
