Crude oil trades above $111/bbl as US-Iran conflict in West Asia enters 12th week; gold down 0.6%

Crude oil prices were trading above $111 per barrel (bbl) during the early market hours on Monday, May 18, after US President Donald Trump maintained pressure on Iran to move towards a potential peace deal with the United States as the war entered its 12th week since beginning in late February.

In a Truth Social post over the weekend, President Trump said that the “clock is ticking” for Iran, threatening the Gulf country that it should move fast or “there won’t be anything left of them.”

This comes after early last week, when Trump rejected Iran’s response to the US proposal of a potential peace deal, as the two nations failed to agree on the nuclear capabilities in Iran’s arsenal.

After Brent crude oil opened at $110 per bbl for trading on Sunday evening market session, the energy prices rose to $111 per bbl on the heightened uncertainty in the market over any potential relief this week.

The US-based West Texas Intermediate (WTI) crude oil prices also rose to $102 per bbl after opening around $101 per bbl on Sunday evening, according to Investing.com data.

Oil prices today

At 7:30 am (IST), Brent crude oil futures were trading 1.95% higher at $111.40 per bbl on Monday, compared with $109.26 per bbl at the previous market close, according to the exchange data.

Oil prices have gained nearly 7% in the past one week, and over 23% in the last one month period.

The WTI crude oil prices were trading 2.3% higher at $103.38 per bbl as of 7:31 am (IST) on Monday, May 18, compared to the previous market close level of $101 per bbl, as per the data.

Drone strike & Trump’s meeting

Oil prices were trading higher on early market Monday, India time, as investors remained cautious about the fresh attacks in West Asia and Trump’s national security team meeting with his top officials to chart a way forward for the US-Iran conflict.

Regional media reports from Al Jazeera suggest that the United Arab Emirates (UAE) has witnessed a drone strike on the perimeter of its Barakah Nuclear Energy Plant, which has sparked a fire amid the existing ceasefire in the region.

According to the media report, the Abu Dhabi Authorities said that the fire broke out at an electrical generator outside the inner perimeter of the plant on Sunday. No injuries were reported, and the radiation remained normal.

On the Western front, Trump met with Vice President JD Vance, State Secretary Marco Rubio, CIA Director John Ratcliffe, and Steve Witkoff, among others, to discuss the President’s visit to China.

With Trump being impatient with Iran’s negotiations, his team has held off on deciding how to deal with the Gulf nation during the President's visit to China. Investors across the world now eye any positive or negative cue this week, which will, in turn, drive the commodity prices in either direction.

Gold prices today

At 10:03 pm (ET), the New York Mercantile Exchange-based COMEX gold prices were trading 0.62% lower at $4,533.60 per ounce, compared with $4,561.90 per ounce at the previous market close, as per the official data.

The gold prices remained under pressure due to a higher, continued US dollar demand in the markets, as traders tend to buy less of the precious metal at a higher current price. This further weighs down the gold demand in the market as buyers are able to get a reduced quantity of the same at a high price.

Bloomberg US dollar spot index (DYX) data showed that the greenback was trading 0.08% higher at 99.259 as of 10:04 pm (ET) on Sunday, May 17, in the United States, closing in on the 100 psychological level, compared to the previous currency market close.