Brent crude oil prices (BZ=F) have snapped their five-day rally after China held back on additional stimulus today. However, traders are still watching for any escalation between Israel and Iran and how it may impact prices.

Invesco chief global market strategist Kristina Hooper believes that the commodity's prices won't remain elevated for long, and joins Morning Brief to lay out her case.

"Whenever we see Middle East tensions rise, and in particular, what we saw last week was concern that Iran's oil industry would be bombed in some way. And that would, of course, limit production and, of course, increase prices. But that's happened before. We've seen spikes before where oil prices in the last, over a year, have gone up to above $90, and they've come down pretty swiftly because tensions have eased and investors got a little less emotional and a little less worried. So I think that same thing could easily happen again," Hooper tells Yahoo Finance.

She notes that investors are currently walking on eggshells as Israel weighs retaliation against Iran. However, once there is a deescalation, prices should normalize. Thus, she believes that these high prices should not have a "significant impact" on inflation.

Hooper also points to other factors influencing oil prices. She explains that prices fell slightly on Tuesday due to concerns about decreased demand from China.

Meanwhile, the price of gold (GC=F) is hovering around its all-time high. Hooper explains, "Gold makes sense for a lot of investors right now because they're using it as a geopolitical risk hedge. And I think of it as as enabling them to then also be risk-on in other parts of their portfolio. Whereas you might have seen in the past, investors become fully risk-off so long as they feel they have adequate geopolitical risk hedges, whatever they might be."

She highlights that gold has become investors' "go-to safe-haven asset class." However, she notes that the opportunity cost of owning gold will decrease as interest rates continue to fall.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl