Trump Says Iran Deal Is “Over” — And Gold Is Paying the Price

TLDR

• Gold dropped over 1.3% to around $4,052 an ounce on Wednesday
• Trump declared the U.S.-Iran interim peace deal “over” at a NATO summit in Turkey
• Iran claimed it struck 85 U.S. military sites in Kuwait and Bahrain
• Oil prices rose on the escalation, reigniting inflation fears
• Silver fell 2.6%, platinum sank 3.5%, and palladium lost 3.2%

Gold prices fell sharply on Wednesday after President Donald Trump said the interim peace deal with Iran was finished, following a new round of military exchanges between the two countries.

By early morning in New York, spot gold had dropped 1.2% to $4,057.09 an ounce. Gold futures fell further, down 2.2% to $4,066.56 an ounce.

Speaking at a NATO summit in Turkey, Trump accused Iran of publicly denying agreements that had been made behind closed doors.

“We make a deal, and everyone’s agreed. No nuclear weapons. We make a deal. They go outside, talk to the press, they say we never even talked about it. There’s something wrong with them. They’re cuckoo. As far as I’m concerned, it’s over,” Trump said.

Iran Claims Strikes on U.S. Military Sites

Iran’s Islamic Revolutionary Guards Corps said it struck 85 U.S. military sites in Kuwait and Bahrain and shot down an American MQ-9 drone.

BREAKING: President Trump says the ceasefire with Iran is “over.”

“I don’t want to deal with them anymore, they are scum,” Trump says. pic.twitter.com/laHQdRKZUV

— The Kobeissi Letter (@KobeissiLetter) July 8, 2026

The Pentagon said its own strikes were a response to Iranian attacks on commercial ships in the Strait of Hormuz, a major route for global oil shipping. U.S. Central Command said it hit more than 80 targets inside Iran and more than 60 Iranian small boats in and around the strait.

Iran has not claimed responsibility for attacks on ships off the coast of Oman on Tuesday, which included a Saudi oil tanker and a Qatari vessel carrying liquefied natural gas.

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Oil Prices Rise, Inflation Fears Return

Oil prices moved higher as tensions escalated, recovering some of the losses recorded after the original peace framework was signed on June 17.

Rising crude prices are stoking fears of a new wave of inflation in countries around the world.

Whether the Federal Reserve will respond by raising interest rates is now a key question for markets. Bets on a Fed rate hike had cooled after weaker-than-expected jobs data last week, but analysts at Britannia Global Markets said those wagers are heating up again following the new round of strikes.

Higher interest rates tend to make gold less attractive to investors since the metal pays no yield. A stronger U.S. dollar could also make gold more expensive for buyers outside the United States.

Lukman Otunuga, Head of Market Research at FXTM, said gold is at a “critical crossroads,” where geopolitical tension and inflation fears are pulling against softer U.S. economic data that may limit how aggressively the Fed can act.

Markets are now watching for the minutes from the Fed’s June meeting, due out later Wednesday. The Fed held rates steady at 3.5% to 3.75% at that meeting, though some members projected rate increases in 2026.

Other precious metals also fell. Silver dropped 2.61% to $58.39 an ounce, platinum fell 3.47% to $1,589.17, and palladium lost 3.19% to $1,212.94.

Trump’s comments about Greenland and Spain at the same NATO summit added to broader concerns about global stability, putting further pressure on metals markets.