International oil prices advanced on Wednesday as traders weighed escalating Middle East tensions alongside another drop in U.S. crude inventories, according to CoinDesk. Brent crude traded around $92 a barrel and WTI near $90, with both benchmarks up roughly 2% on the day. The move followed U.S. President Trump's latest comments on Iran, which markets interpreted as a firmer stance that could further narrow the remaining diplomatic space between Washington and Tehran. Supply and shipping risks in the Gulf remain central to the rally, with the Strait of Hormuz again in focus. Iran continues to limit some shipping activity in the corridor, and the United States has placed restrictions on vessels linked to Iranian ports. U.S. Energy Secretary Chris Wright said vessel traffic and crude exports in the Gulf have started to recover, but conditions have not returned to normal. Prolonged disruption in the strait, a key global energy transit route, could tighten crude supply and push transport costs higher, keeping a geopolitical risk premium embedded in prices. Concerns have also intensified over the potential for further military escalation. Trump's latest remarks are viewed as tougher than earlier messaging, which had fueled speculation that a ceasefire or de-escalation might still be possible. Recent reports say the U.S. government is weighing additional military options aimed at Iranian infrastructure, including strategic facilities and transportation networks. The latest flare-up followed earlier U.S. strikes on Iranian radar sites, air defenses and other military facilities near the Gulf after a U.S. helicopter was shot down. Iran subsequently launched missiles and drones at U.S. targets in Bahrain, Jordan and elsewhere. While most incoming threats were reportedly intercepted, the exchange has heightened investor sensitivity to further escalation. On the fundamentals side, U.S. crude inventories have fallen for seven straight weeks. The latest weekly draw exceeded expectations by 4 million barrels, offering additional support to prices. Traders say continued inventory declines point to resilient demand despite high interest rates and economic uncertainty. The market is now balancing two competing forces: tightening supply risks from rising tensions, constrained shipping and shrinking inventories, versus the possibility of renewed diplomacy. Further deterioration in transit through Hormuz could extend the rally, while signs of progress in negotiations may temper supply concerns.

Gold in India has fallen to levels last seen before the government raised import duties in May, despite a sharp jump in the overall tax take on imported bullion. On June 10, 2026, MCX gold futures slid nearly 2% to ₹149,500 per 10 grams, the lowest since early May. The drop reflects a broad pullback in international gold prices, which has more than offset the higher levy structure introduced on May 13. Under the May 13 changes, import taxes were reorganized into a 10% basic customs duty plus a 5% Agriculture Infrastructure and Development Cess. Including Goods and Services Tax (GST), the effective tax burden rose to 18.45% from 9.18% previously. The hike hit demand quickly. Industry estimates put purchases at roughly 7.5 tonnes in the two weeks after the change, down about 70% from nearly 25 tonnes over the same period a year earlier. Jewellers reported a broad slowdown in buying activity. Smaller, unorganized players have been squeezed the most, given thinner margins and limited ability to absorb an 18.45% effective tax rate without passing costs on to consumers. Larger organized retailers have had more room to manage pricing and inventory. Higher duties are also reviving concerns over illicit supply. Reports indicate smuggled inflows could top 100 metric tonnes in 2026, a meaningful share in a market where annual demand typically runs in the several-hundred-tonne range. The pattern echoes 2013, when duties were raised to 10% and a surge in illegal imports helped prompt a partial rollback. The current 15% duty exceeds that peak, and the 18.45% effective burden is materially higher. For investors and traders, the setup is unusual: rupee-denominated prices are at multiweek lows even after a major tariff increase. If global bullion prices stabilize or rebound, domestic prices could adjust higher quickly as the duty premium reasserts itself. A roughly 70% demand slump and the prospect of 100-plus tonnes of smuggled gold are also the type of outcomes that often bring policy back into focus; any reduction in duties would lift legal demand and could push domestic prices higher even if global prices hold steady.