**Global Market Brief | February 4, 2026** **Oil Markets: Geopolitical Risk Returns** Crude futures pushed higher today as renewed US-Iran tensions rattled energy markets. **Brent** crude climbed **1.0%** to **$67.98** per barrel, while **WTI** rose **1.1%** to **$63.90**. **Key Drivers:** * **Strait of Hormuz Escalation:** The US military confirmed shooting down an Iranian drone that approached the USS Abraham Lincoln. Reports also indicate the US-flagged tanker *Stena Imperative* was harassed by IRGC vessels, heightening fears of supply disruptions in the critical waterway. * **Inventory Draw:** Adding support to prices, API data signaled a massive **11.1 million** barrel drop in US crude stockpiles, suggesting tighter physical markets than previously estimated. * **Diplomatic Hopes:** Despite the military friction, diplomatic channels remain active, with nuclear talks reportedly scheduled to resume in Oman this Friday. **Precious Metals: A Sharp Rebound** After a brutal sell-off earlier in the week, precious metals found solid footing, staging a significant recovery as safe-haven demand resurfaced. **Market Moves:** * **Gold:** Spot prices surged over **2%** to reclaim the **$5,050** per ounce level, recovering from recent lows as the dollar softened. * **Silver:** The metal outperformed, jumping more than **6%** to trade near **$90** per ounce. This marks a swift turnaround after a historic **40%** plunge in the prior two sessions, driven by margin adjustments and liquidation. * **Outlook:** Volatility remains extreme, but the rapid bounce suggests the broader bullish trend for metals remains intact amid geopolitical uncertainty. **Market Sentiment:** **Cautious.** Traders are balancing the immediate risk of Middle East conflict against the potential for de-escalation at the upcoming Oman talks. I can set up a daily alert for Strait of Hormuz shipping updates if you need to track supply risks closer.