Oil prices surge, gold falls after Hormuz blockade order

International oil prices have surged after President Trump ordered a naval blockade of the Strait of Hormuz following the collapse of U.S.-Iran peace talks. Meanwhile, gold prices fell by 2% at one point to around $4,650 per ounce, erasing all of the previous week's gains. The blockade announcement came after negotiations in Pakistan over the weekend failed to convert an unstable ceasefire, which followed a six-week conflict in the Middle East, into a permanent peace agreement. The spike in energy prices is heightening inflation risks, increasing the likelihood that central banks may delay interest rate cuts or even implement hikes. This creates a bearish outlook for gold, which is a non-yielding asset.