Gold and oil prices fell back on Friday afternoon following a spike in the wake of Israel's overnight strike against Iran.
An unnamed regional intelligence source said during the day that direct attacks between Israel and Iran were now “over” and that the latter was not likely to retaliate against the latest strike, according to CNN.
This came after Iran launched an attack last week, with strikes between the two seemingly contained so far.
Iranian officials also told Reuters that no plans were in place to immediately hit back.
Gold fell back to sit 0.3% lower for a day at US$2,379 on the news, while benchmark Brent Crude was down 1.3% at US$86.45 a barrel over the same period.
Gold had shot above the US$2,400 per ounce mark for the second time in a week on news of the strike by Israel, almost returning to all-time highs.
The price of the precious metal jumped by 1.6% in the space of an hour to a peak of US$2,415 overnight, before scaling back.
Oil prices also jumped. Brent crude jumped to US$90 a barrel, up 4.4%, to a peak of US$90.69 overnight, before also falling back.
US equivalent West Texas Intermediate was up 4.5% overnight to US$86.23 a barrel.
Explosions were reportedly heard early on Friday morning around the Iranian city of Isfahan.
According to US sources, an Israeli missile had struck Iran overnight, with the latter claiming three drones were destroyed in the attack.
Iran has since claimed that no missile landed in its territory, with Isfahan home to an air base and several military sites, including nuclear facilities which have reportedly not sustained any damage.
Israel’s strike comes after Iran launched missiles and drones at it last week with a response threatened earlier this week.
“We will likely see a further flight to safety before the weekly closing bell on fear of further escalation of tensions during the weekend,” Swissquote analyst Ipek Ozkardeskaya had warned earlier while discussing commodities.