Oil and Gold: 5 Energy Crises That Drove the Price of the Metal
- Mar 17
- 4 min read
Updated: Mar 20
What happens to gold when an energy crisis shakes the world? As of February 28, 2026, following the outbreak of war between the United States and Israel against Iran, energy markets once again entered turbulent territory. Military strikes in the region and the risk of supply disruptions pushed oil prices above $100 per barrel, raising concerns among investors and analysts about the potential impact on the global economy.
Gold during energy crises often behaves in complex ways. Although gold prices may react unevenly in the short term—sometimes even registering temporary corrections due to liquidity selling, as has occurred during the first days after the start of the current conflict—history shows that oil shocks tend to ultimately push gold prices higher.
Why Oil Crises Affect the Price of Gold
When oil prices surge, inflation risks increase due to rising transportation and production costs, often triggering an economic slowdown. Under such circumstances, gold frequently becomes one of the primary safe-haven assets for investors and central banks.
Five Oil Crises That Boosted Gold Prices
1. OPEC Oil Embargo (1973–1974)
The Yom Kippur War triggered an oil embargo by Arab countries against the United States and Europe. Oil prices rose by nearly 400% in just a few months, generating severe global inflation.
Gold reacted dramatically. In just one year, its price nearly tripled, marking the first major gold bull market of the modern era.
Year Gold Price
1973 US $65 / ounce
1974 US $183 / ounc
Increase: + 182%
2. Iranian Revolution and the Second Oil Crisis (1979–1980)
The fall of the Shah of Iran caused a sharp drop in the country’s oil production and triggered the second major energy crisis of the decade. Oil prices doubled again, and inflation in the United States exceeded 13% annually.
In less than two years, the price of gold increased more than fourfold, reaching the historic record of the era.
Year Gold Price
1978 US $193 / ounce
1980 US $850 / ounce
Increase: + 340%
3. Gulf War Oil Crisis (1990–1991)
Iraq’s invasion of Kuwait caused an immediate surge in oil prices and raised fears about global energy supplies. Although the impact was far more moderate than in the 1970s, gold prices reacted as a safe haven after several years of losing ground due to high interest rates in the United States.
Year Gold Price
1990 US $360 / ounce
1991 US $400 / ounce
Increase: + 11%
4. Energy and Global Financial Crisis (2008)
Strong growth in global energy demand and geopolitical tensions pushed oil prices to $147 per barrel, the highest level recorded up to that point. Gold also reached new highs, consolidating its role as a safe haven amid financial volatility and the global economic crisis.
Year Gold Price
2007 US $650 / ounce
2008 Más de US $1,000 / ounce
Increase: + 54%
5. Energy Crisis Following the War in Ukraine (2022)
Russia’s intervention in Ukraine created one of the largest energy disruptions in decades, especially in Europe, where energy prices surged significantly. Gold once again benefited from the inflationary and geopolitical environment.
Year Gold Price
2021 US $1,800 / ounce
2022 US $2,050 / ounce
Increase: + 14%
Additionally, central banks began one of the most intense gold-buying cycles of the past several decades.
The New Middle East Crisis and Gold’s Role
The recent military escalation between the United States and Israel against Iran has once again raised fears of a global energy shock, particularly if the conflict continues to affect traffic through the Strait of Hormuz, through which approximately 20% of the world’s oil flows (about 30% of seaborne oil shipments) and roughly 20% of global liquefied natural gas (LNG).
Strait of Hormuz
In the first days of the conflict, oil prices rose sharply, while gold showed mixed movements. During periods of extreme financial stress, some investors temporarily sell gold to cover losses in other assets—a phenomenon known as margin calls.
However, if geopolitical tensions persist, history suggests that gold could ultimately reflect the increase in global systemic risk in its price.
The Historical Correlation Between Oil and Gold
Financial history shows a recurring pattern. When oil prices rise suddenly due to conflicts or supply disruptions, global inflation increases, economic uncertainty grows, and investors seek safe-haven assets. In that environment, gold tends to strengthen.
As long as oil remains the central fuel of the global economy, every new energy crisis will have the potential to reinforce gold’s historical role as a hedge against economic and geopolitical instability.
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