Middle East

Gold prices hovered near a six-year high as dovish signals from major central banks and heightened tensions between the United States and Iran boosted demand for the safe-haven metal.

President Trump on Monday signed an executive order to impose “hard-hitting” sanctions against Iran days after Tehran shot down a U.S. spy drone over the Strait of Hormuz.

Last week, Brent climbed 5% and U.S. crude surged 10% after Iran shot down a U.S. drone on Thursday in the Gulf.

The U.S. imposed sanctions on Iran last year and withdrew from a deal signed in 2015 with American allies that limited the Middle Eastern country’s stockpile of enriched uranium.

While the summit is expected to be dominated by news about the U.S-China trade war, concerns about the possibility of a military confrontation between the U.S. and Iran could play a role behind the scenes.

The president also confirmed in a tweet that he would discuss Iran at Camp David this weekend.

“The Iranian national leadership was furious with the tactical commander who shot down the drone because they clearly did not want that provocation to take place,” said Gen. Keane.