Peter Schiff Says Oil Tops 115 While Gold Dips But May Rise Soon

TLDR

Table of Contents

WTI crude crossed $115 as conflict disrupts global supply
Gold fell about $40 even as inflation concerns increased
Strait of Hormuz disruption cut major oil flows globally
Schiff says higher oil may support gold prices over time

The global oil market moved sharply as West Texas Intermediate crude crossed $115 per barrel. At the same time, gold prices slipped by about $40. Economist Peter Schiff said the drop in gold may not last long.

He argued that rising oil prices could push inflation higher. That could later support gold demand. His comments came as geopolitical tensions continued to affect supply and investor sentiment.

Oil prices rise as conflict disrupts supply

Oil prices opened higher after the Easter weekend as the conflict in the Middle East continued. West Texas Intermediate rose above $115, while Brent crude traded above $111.

The surge followed renewed threats from US President Donald Trump. He warned of possible strikes on Iranian infrastructure if the Strait of Hormuz remains closed.

West Texas oil just rose above $115. Gold is down on the news, off $40 and trading just below $4,635. But higher oil prices, which will weaken the U.S. economy and lead to bigger budget deficits and higher inflation, are actually bullish for gold. Buy now! https://t.co/GGNU9tT9EQ
— Peter Schiff (@PeterSchiff) April 5, 2026

Traders reacted quickly, adding a risk premium to oil prices. Supply concerns also grew as the conflict entered its sixth week.

An analyst said, “The market is reacting to the heightened geopolitical risk.” He added that any disruption could affect production and exports.

Strait of Hormuz blockage tightens markets

The Strait of Hormuz remains restricted for US and allied shipping. Iran has allowed limited transit for select countries, including China and India.

This route usually carries about 20% of global oil supply. Current restrictions have reduced daily flows by several million barrels.

As a result, global supply has tightened, and prices have stayed elevated. Governments are also monitoring the situation closely.

Iran dismissed recent US threats. A senior official called the statements “a helpless, nervous, unbalanced and stupid action.”

Gold slips even as inflation fears grow

Gold prices moved lower despite rising oil costs. The metal dropped around $40 and traded below recent highs.

Peter Schiff addressed the move and said it may not reflect long-term trends. He stated that higher oil prices often lead to inflation.

He said, “Higher oil prices… are actually bullish for gold. Buy now!” His view suggests that current weakness may be temporary.

Investors often turn to gold during inflation periods. However, short-term market reactions can differ due to shifting expectations.

Outlook depends on geopolitical decisions

The near-term outlook for oil depends on political developments. Markets are watching whether the US takes military action.

If tensions rise further, analysts expect oil prices to move toward $120 or higher. A diplomatic outcome could bring prices closer to $100.

Higher oil prices are already affecting fuel costs. In the US, gasoline prices have crossed $4 per gallon.

Central banks are also watching closely. Rising energy costs could delay interest rate cuts and keep inflation pressure in place.

Peter Schiff’s comments focus on the longer-term trend. He maintains that rising oil and inflation could support gold prices again.