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Commodity Markets Volatile on Tentative US-Iran Ceasefire Extension

Gold and crude oil swung sharply Thursday as negotiators from the United States and Iran reached a preliminary agreement to extend their ceasefire and initiate talks on Iran's nuclear program, pending final approval from President Trump.

Gold erased earlier losses following the reported breakthrough, while oil prices fluctuated between gains and declines before pulling back as markets absorbed the news.

Market participants remained cautious about the timeline for normalizing traffic through the Strait of Hormuz, a critical chokepoint for global energy supplies. Traders expressed skepticism that the waterway could resume full operations within a month of a finalized peace deal, despite optimistic projections from negotiating parties.

The agreement's fate depends on Trump's sign-off. Recent U.S. sanctions against Iran's Hormuz Strait authority underscored the administration's hardline stance independent of electoral pressures.