Gold Slides Below $4,000 After Trump Orders Iran Port Blockade as Markets Await US CPI

Last Updated on 14/07/2026

• Gold prices fell to around $3,995 during Tuesday’s early Asian trading session.
• The decline followed President Trump’s decision to reinstate the Iran port blockade and his pledge to impose a 20% levy on cargo transiting the Strait of Hormuz.
• Investors are now awaiting the release of the US June Consumer Price Index (CPI), which is expected to be the key market catalyst later on Tuesday.

Gold prices (XAU/USD) continued to trade under pressure, hovering around $3,995 during Tuesday’s early Asian session. The precious metal remained on the defensive as escalating tensions between the United States and Iran reinforced concerns over persistent inflation. Investors are now focused on the release of the US June Consumer Price Index (CPI) and testimony from Federal Reserve Chair Kevin Warsh, both scheduled for later on Tuesday.

According to Bloomberg, US President Donald Trump reinstated the blockade on Iranian vessels passing through the Strait of Hormuz and announced a 20% fee on all other cargo transiting the strategic waterway. Trump also pledged to intensify military action against Iran, stating that the US would continue launching heavy strikes over the coming days.

The renewed blockade raises the risk of retaliation from Tehran, potentially increasing attacks on commercial shipping in the Strait of Hormuz. Such disruptions could fuel higher energy prices, adding to inflationary pressures and reinforcing expectations that the Federal Reserve will keep interest rates elevated for longer. Although gold typically benefits from heightened geopolitical uncertainty, its appeal is often limited in a high-interest-rate environment because it does not generate yield.

Market participants are also awaiting the latest US inflation figures for further policy clues. Economists expect the headline CPI to decline 0.1% month-over-month in June, while core CPI is forecast to increase 0.3% over the same period. If inflation comes in below expectations, the US Dollar could weaken, providing short-term support for dollar-denominated gold prices.