Geopolitical Conflict Drives Gold Rally as Insurers Cut Gulf Coverage

Global markets shifted into a “risk-off” dynamic on Monday following military strikes on Iran, triggering immediate capital flows into safe-haven assets. Gold (XAU/USD) surged as escalating geopolitical tensions in the Middle East threatened global energy supply chains.

Insurers Withdraw War Risk Cover

Marine insurers have hurriedly scrapped “war risk” coverage for vessels operating in Iranian waters, the Gulf, and adjacent maritime zones.

Impact on Global Supply Chains

• Energy Choke Point: The Gulf remains a primary artery for global oil transport; halted transit creates a de facto blockade.
• Price Volatility: Significant risk premiums expected in Crude Oil (Brent/WTI), impacting GDP and Fed policy paths.

Market Snapshot & Outlook

• Safe Havens: Continued strength in the US Dollar (USD), Japanese Yen (JPY), and Swiss Franc (CHF).
• Commodity Currencies: High volatility in the Canadian Dollar (CAD) linked to WTI price spikes.