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Gold drops as inflation worries linger on failed US-Iran talks

Spot gold has fallen more than 11 per cent since the US-Israeli strikes on Iran began on February 28

Reuters
Reuters

13 April, 2026

Gold drops as inflation worries linger on failed US-Iran talks
Image: Getty Images/ For illustrative purposes

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Gold prices touched a near one-week low on Monday, pressured by a stronger dollar, while a surge in oil prices following failed US-Iran peace talks fuelled
inflation worries and dampened expectations for Federal Reserve interest rate cuts this year.

Spot gold was down 0.4 per cent at $4,726.64 per ounce, as of 0620 GMT, after hitting its lowest since April 7 earlier in the day at $4,643. US gold futures for June delivery fell 0.8 per cent to $4,748.70.

The dollar strengthened 0.3 per cent, while oil prices bounced back above $100 a barrel, as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments, following the US and Iran’s failure to reach a deal to end the war.

Iran’s Revolutionary Guards responded by warning that military vessels approaching the Strait will be considered a ceasefire breach and dealt with harshly and decisively.

Oil prices has put gold on the back foot again

“Ceasefire optimism has unwound following the failure of the peace talks, and the resulting push higher by the dollar and oil prices has put gold on the back foot again,” said Tim Waterer, chief market analyst, KCM Trade.

Spot gold has fallen more than 11 per cent since the US-Israeli strikes on Iran began on February 28.

While inflation and geopolitical risks typically boost gold’s appeal as a hedge, elevated interest rates weigh on the non-yielding metal.

A stronger dollar also makes greenback-priced bullion more expensive for holders of other currencies.

“As soon as oil prices push back above $100, attention quickly turns to potential central bank rate hikes to curb inflation, and it is this interest rate outlook that is undermining gold’s performance,” Waterer said.

Traders now see little chance of a US rate cut this year, as higher energy prices threaten to feed into broader inflation and limit the scope for monetary easing.

Before the war in the Middle East began, there were expectations for two Fed rate cuts this year.

Among other metals, spot silver fell 1.9 per cent to $74.41 per ounce, platinum lost 0.2 per cent to $2,041.89, while palladium gained 0.5 per cent to $1,527.95.

Dubai completes phase 1 of Al Quoz sewerage project worth Dhs250m

The development forms part of Dubai’s broader Sewerage System Development Programme and aligns with the Tasreef programme, a Dhs30bn initiative

Neesha Salian
Neesha Salian

13 April, 2026

Dubai completes phase 1 of Al Quoz sewerage project worth Dhs250m
Image: Dubai Media Office

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Article Summary
Dubai Municipality completed phase one of a £52m sewerage and stormwater network in Al Quoz Creative Zone, covering 155 hectares. This is part of a larger £104m project within Dubai's Sewerage System Development Programme and the £6.3bn Tasreef initiative. The upgrades boost drainage capacity, enhancing infrastructure resilience and supporting Dubai's sustainable urban growth.

Dubai Municipality said it has completed the first phase of a sewerage and stormwater network development project in Al Quoz Creative Zone at a cost of Dhs250m, part of a wider Dhs500m investment.

The project covers Al Quoz Industrial Areas 1, 2, 3 and 4, as well as the area between Sheikh Zayed Road and Al Khail Road, spanning 1,600 hectares and more than 1,507 plots.

Phase one included construction of sewerage and stormwater drainage networks across 155 hectares and 123 plots.

The works delivered 15km of sewerage pipelines with diameters ranging from 160 mm to 1,600 mm, alongside 14km of stormwater drainage lines with diameters between 200mm and 3,000mm.

The Sewerage and Stormwater Network Development Project

The development forms part of Dubai’s broader Sewerage System Development Programme and aligns with the Tasreef programme, a Dhs30bn initiative aimed at creating one of the region’s largest unified stormwater collection systems and increasing drainage capacity by 700 per cent over the next 100 years.

“The Sewerage and Stormwater Network Development Project in Al Quoz is one of Dubai Municipality’s key strategic projects to enhance the efficiency, resilience, and operational readiness of the emirate’s infrastructure systems. It supports Dubai’s ongoing urban and population growth, reinforces its position as a global leader in sustainable urban planning, and strengthens the future readiness of its infrastructure, making Dubai a more attractive, sustainable, and liveable city,” said Marwan Ahmed bin Ghalita, director general of Dubai Municipality.

“The project enhances the efficiency of sewerage and stormwater infrastructure systems in Al Quoz Creative Zone and supports its integrated urban model. It will further strengthen the area’s appeal as a vibrant hub for economic and investment activity, while keeping pace with the emirate’s future development requirements,” he added.

Al Quoz sewerage project will enhance Dubai’s preparedness to face climatic conditions

Adel Mohammed Al Marzouqi, CEO of the Waste and Sewerage Agency at Dubai Municipality, said: “This project contributes to enhancing the efficiency of the rainwater drainage system and the smooth flow of water in the Al Quoz Creative Zone, while reducing water accumulation. This ensures the continuity of services and business operations and supports the city’s resilience and preparedness to face various future climatic conditions.”

Dubai Municipality said it will continue to implement infrastructure projects aimed at strengthening resilience, improving operational efficiency and ensuring service continuity in line with urban growth, as the emirate advances its transition towards a smart and sustainable city model.

ADNOC group CEO says Strait of Hormuz not Iran’s to close

Dr Al Jaber said that since February 28, at least 22 vessels had been targeted, resulting in 10 crew deaths and leaving around 20,000 seafarers stranded and unable to transit safely

Neesha Salian
Neesha Salian

12 April, 2026

ADNOC group CEO says Strait of Hormuz not Iran’s to close
Image: ADNOC

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Article Summary
Dr Al Jaber (ADNOC) warned against Iran restricting access to the Strait of Hormuz, emphasising its global economic significance. He highlighted the unlawful and dangerous nature of such actions. Since February, numerous vessels have been targeted, causing crew deaths, seafarer displacement, and significant disruption to global shipping, including oil tanker blockages.

Dr Sultan Ahmed Al Jaber, MD and group CEO, Abu Dhabi National Oil Company (ADNOC), said on Sunday that the Strait of Hormuz cannot be controlled or restricted by Iran, warning that any disruption would have far-reaching global consequences.

In a post on X, Dr Al Jaber said attempts to block navigation through the waterway would go beyond a regional issue, calling it a threat to a critical artery for global trade.

“Any effort to restrict passage is not just a regional matter but a disruption to a global economic lifeline, and a direct threat to energy, food and health security worldwide,” he wrote.

View post on X

ADNOC MD and GCEO: Global economy would not be able to absorb the fallout

He described such actions as unlawful and dangerous, adding that the global economy would not be able to absorb the fallout or allow such a situation to persist.

Dr Al Jaber said that since February 28, at least 22 vessels had been targeted, resulting in 10 crew deaths and leaving around 20,000 seafarers stranded and unable to transit safely.

He added that roughly 800 commercial ships were currently stranded, including nearly 400 oil tankers, underscoring the scale of disruption to global shipping flows.

The Strait of Hormuz, a vital conduit for a significant share of the world’s oil exports, has come under increased scrutiny amid rising regional tensions.

Qatar reopens its waters: Navigation for all vessels resumes

The ministry stressed that adherence to these measures is essential to maintaining the highest standards of safety across all maritime trips

Gulf Business
Gulf Business

12 April, 2026

Qatar reopens its waters: Navigation for all vessels resumes

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Article Summary
Qatar's Ministry of Transport will fully resume maritime navigation for all vessels from 12 April 2026, operating between 6am and 6pm. Fishing vessels retain 24-hour access. Strict compliance with safety regulations is crucial. The ministry also urged fair pricing from licensed operators, warning against surcharges due to "extraordinary circumstances," citing existing legal frameworks.

Qatar’s Ministry of Transport (MOT) has announced the full resumption of maritime navigation for all types of vessels starting Sunday, April 12, 2026, marking a significant return to normal operations across the country’s waters.

According to an official statement released Saturday, navigation will be permitted between 6:00am and 6:00pm for all maritime vessels and ships. The ministry emphasised that vessels licensed for fishing activities will continue to operate throughout the day, in line with earlier directives, a Qatar News Agency report said.

Read more-Trump announces US blockade of Strait of Hormuz

Officials underscored the importance of strict compliance with safety requirements. “All operators must ensure the availability and proper functioning of safety and security equipment before and during voyages,” the MOT said. The ministry stressed that adherence to these measures is essential to maintaining the highest standards of safety across all maritime trips.

Compliance and fair practices urged

The announcement follows earlier guidance issued on April 9, when the MOT’s Maritime Transport Affairs called on licensed entities to uphold fairness and transparency in delivering maritime services.

Authorities cited existing legal frameworks, including maritime and navigational laws, as key references for compliance.

“The current extraordinary circumstances must not justify any surcharges,” the ministry warned, reiterating that violations could result in legal accountability.

Saudi Arabia summons Iraq envoy over drone threats from Iraqi territory

Riyadh lodges formal protest, warning it will take “all necessary measures” to defend its sovereignty amid escalating regional tensions

Gulf Business
Gulf Business

12 April, 2026

Saudi Arabia summons Iraq envoy over drone threats from Iraqi territory
Image: Getty Images

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Article Summary
Saudi Arabia summoned Iraq's ambassador, lodging a formal protest over drone attacks launched from Iraqi territory targeting the Kingdom and other Gulf nations. The Saudi government condemned these "blatant" threats and urged Iraq to take decisive action to address the problem, emphasising the importance of Iraq dealing responsibly with the situation.

Saudi Arabia has summoned Iraq’s ambassador in Riyadh over what it described as ongoing drone threats launched from Iraqi territory targeting the kingdom and other Gulf states.

The Saudi Press Agency (SPA) reported that Iraqi ambassador to Saudi Arabia, Safia Taleb Al-Suhail, was formally summoned by the Kingdom’s Ministry of Foreign Affairs.

During the meeting, deputy minister for political affairs ambassador, Dr Saud Al-Sati, delivered an official protest note, condemning what were described as “continued blatant drone attacks and threats” originating from Iraqi territory.

The Saudi side reiterated its “strong condemnation and denunciation” of the incidents, stressing that Iraq must act decisively to address the threats.

“The Kingdom emphasised the importance of Iraq dealing responsibly with these threats and attacks,” the foreign ministry said, according to SPA.

Trump announces US blockade of Strait of Hormuz

Trump says US Navy to interdict vessels linked to Iranian toll system as Tehran deploys special forces along southern coast

Gareth van Zyl
Gareth van Zyl

12 April, 2026

Trump announces US blockade of Strait of Hormuz
Image: Getty Images

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Article Summary
Following failed nuclear talks with Iran, US President Trump announced a blockade of vessels in the Strait of Hormuz, instructing the Navy to intercept ships paying tolls to Iran. He threatened further military action. Iran has responded by deploying special forces to its southern coastline. These events escalate tensions and risk disruption to global oil shipments.

US President Donald Trump has said the US will begin blockading vessels in and around the Strait of Hormuz, following the collapse of peace talks with Iran in Islamabad over the weekend.

In a series of remarks on Truth Social later on Sunday, Trump said negotiations had made progress on several fronts but ultimately failed on what he described as the key issue.

“Most points were agreed to, but the only point that really mattered, NUCLEAR, was not,” he said.

The escalation comes just five days after the two sides agreed to a fragile ceasefire, underscoring the volatility of the situation around one of the world’s most critical energy chokepoints.

Trump said he had instructed the US Navy to take direct action against vessels linked to Iran’s controversial toll system in the Strait.

“I have also instructed our Navy to seek and interdict every vessel in International Waters that has paid a toll to Iran,” he said. “No one who pays an illegal toll will have safe passage on the high seas.”

He added that “other countries” would be involved in the effort, though he did not provide further details.

In a further warning, Trump said that “at an appropriate moment” the US military would “finish up the little that is left of Iran!”, signalling the potential for renewed military escalation despite the recent ceasefire.

Iran steps up military posture

Meanwhile, Iran has moved to strengthen its defensive position along its southern coastline.

State media reported that navy special forces have been deployed to coastal areas, with the stated aim of countering any potential incursion.

According to Iran’s Student News Network, troops have been positioned near key areas “to counter any possible enemy infiltration into the country’s territory,” accompanied by images of soldiers in camouflage along sandy coastal zones.

The latest developments raise the risk of further disruption in the Strait of Hormuz, a vital artery for global oil and gas shipments that has already seen traffic drop more than 90 per cent in recent weeks.

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