Gold rallied as U.S. and Iran edged toward an interim peace pact that could curb inflation sparked by the war. Prices lifted to nearly $4,335 an ounce, up more than 6% in four sessions. Investors eyed the deal’s potential to stabilize oil markets and reduce commodity volatility for global markets and investors anticipate smoother trading.

The agreement will let Iran sell oil immediately and unlock access to frozen assets, easing cash flow for Tehran. Analysts warn the terms could trigger a rebound in crude supply, tightening pricing dynamics that have fed inflation. Market watchers noted that the deal’s structure might shift geopolitical risk premiums in energy pricing for investors globally.

Gold’s surge reflects traders’ belief that the deal will dampen supply fears and support commodity prices. The U.S. Treasury’s involvement signals a strategic push to reopen oil markets while balancing sanctions relief. Currency analysts expect the dollar to soften slightly as investors reallocate funds toward riskier assets in emerging markets and commodities benefit from oil.

With the peace framework nearing completion, bullion buyers anticipate a steadier supply chain and lower hedging costs. Analysts forecast that the reduction in geopolitical risk could push commodity indices higher, lifting related ETFs. Investors should monitor how the U.S. sanctions committee finalizes the terms, as the pace of implementation will dictate market reactions for investors.