Trump Says Freedom Plan Suspended, Gold Breaks $4,600, WTI Crude Falls Below $100 Level

TradingKey - On the evening of May 5 ET, Trump posted that the "Freedom Plan" to open the Strait of Hormuz has been suspended in the short term to allow space for negotiations with Iran, but the blockade of Iranian ports will continue; meanwhile, U.S. Secretary of State Rubio told reporters that Operation "Epic Fury" against Iran has ended.

Upon the news, the crude oil market retreated rapidly, WTI spot crude prices fell sharply, briefly dropping below the $100 psychological level to a low of $99.12, while Brent crude retreated to a low of $105.61. The market reaction indicates a reassessment of the Strait of Hormuz risk premium; while extreme short-term supply concerns have cooled, Middle East tensions remain sufficient to keep oil prices highly volatile.

WTI Daily Chart, Source: TradingView

Meanwhile, spot gold ( XAUUSD) rallied sharply, with prices successfully breaking above $4,600 and gaining over $70 in the short term to reach a high of $4,624.02. This reflects cooling U.S. inflation expectations amid easing U.S.-Iran tensions, which in turn supports the continued rise in gold prices. While falling oil prices may relieve some inflationary pressure, gold is likely to remain in a high-level consolidation in the short term as long as negotiation prospects remain unclear and transit risks in the Strait of Hormuz persist.

Gold Daily Chart, Source: TradingView

Looking ahead, the market will continue to monitor whether U.S.-Iran negotiations truly progress and whether Trump will further relax or tighten restrictions on Iran during the talks. If further signals of de-escalation emerge, oil prices will be pressured lower, potentially opening up more upside for gold; conversely, oil prices may remain elevated, and gold prices will continue to oscillate at high levels in the short term.