Oil prices remain steady near their highest closing levels in five weeks following fresh hostilities between the United States and Iran, which once again threaten energy exports from the Middle East. Copper has fallen to its weakest point in over a week, while gold has climbed as the US dollar softened.
Crude oil held near the top of its recent range, with West Texas Intermediate posting a third consecutive daily gain and settling above the US$90 per barrel mark. Brent crude closed above US$95 per barrel for the first time since late July after the US launched another round of airstrikes against Iran overnight. President Trump warned of further strikes should Tehran retaliate, and within hours Iran carried out attacks on Jordan, Bahrain, and Kuwait — all nations hosting American military personnel. The renewed escalation has placed shipping through the strategic Strait of Hormuz back under threat.
"The market is now clearly pricing in the risk of direct military conflict between the US and Iran, while the prospect of a negotiated resolution is diminishing," said Arne Lohmann Rasmussen, chief analyst at Copenhagen-based Global Risk Management. Weekly data from the US Energy Information Administration showed refinery crude processing at its highest level in seven years, while gasoline imports fell to 370,000 barrels per day last week, below the same period in 2020. West Texas Intermediate for October delivery gained 0.9% to settle at US$91.01 per barrel, while November Brent rose 1% to close at US$95.63 per barrel.
Copper declined to its lowest level in more than a week as rising oil prices intensified concerns over the global economic outlook. The metal dropped as much as 1.3% in London as the US-Iran standoff over control of the Strait of Hormuz escalated, putting Middle East energy exports back at risk. "Higher oil prices have strengthened market inflation expectations, which is weighing on copper," noted a report from Guangzhou Futures. "Overall fundamentals remain robust, but macro-level uncertainty will continue to cap any upside potential."
At the settlement, three-month copper on the London Metal Exchange fell 0.4% to US$14,215.50 per tonne. Aluminium added 0.1% to US$3,283.50 per tonne, while nickel advanced 1.5% to US$16,913 per tonne. Zinc slipped 1.5% to US$3,865 per tonne, tin dropped 0.7% to US$54,232 per tonne, and lead declined 1.3% to US$1,894.50 per tonne.
Gold advanced as the dollar lost ground, with traders continuing to evaluate the latest signals from Federal Reserve officials on the path of interest rates. Bullion rose as much as 1.6% during the session, supported by a weaker greenback following a sharp appreciation in the Japanese yen. Since gold is priced in dollars, a softer dollar typically enhances the metal's appeal to international investors.
New York Fed President John Williams indicated that inflation continues to ease, noting that tariff effects are gradually dissipating and that higher energy costs have yet to spread to other service sectors. As of 5:00 pm Eastern Time, spot gold was up 1.2% at US$4,381.68 per ounce, while spot silver climbed 1.9% to US$65.3155 per ounce.