According to Sina Finance,oil prices edged higher as traders interpreted conflicting signals regarding the prospects for a peace agreement in the Middle East. LME copper broke through the $14,000-per-ton mark, while LME aluminum rose to its highest level in over four years; market optimism regarding demand outlooks and restricted supply outweighed concerns over the lingering conflict in the Middle East. Gold prices narrowed their gains, as strong U.S. employment data released earlier reinforced market bets that the Federal Reserve would maintain high interest rates for a longer period.

Crude Oil: Oil Prices Edge Higher as Traders Weigh Prospects of U.S.-Iran Talks

Oil prices edged higher as traders interpreted conflicting signals regarding the prospects for a peace agreement in the Middle East.

WTI rose 1.7%, settling near $94 per barrel. Brent crude closed at $96.

Factors contributing to Tuesday's rise in oil prices included reports from Iranian news agencies casting doubt on the progress of negotiations, specifically indicating that Lebanon's Hezbollah would not accept a partial ceasefire agreement with Israel.

Previously, Iran had cited a ceasefire within Lebanon as a condition for reaching a broader peace agreement.

This series of news developments supporting oil prices reversed an early-session decline triggered by de-escalatory rhetoric from Washington. Earlier, ABC News reported that President Trump stated a memorandum of understanding to reopen the Strait of Hormuz could be reached within the coming week.

"If the stance taken by either the U.S. or Iran leads to a further extension of the Strait of Hormuz closure, crude oil inventories in OECD nations could hit a critical threshold by mid-September, potentially triggering a surge in oil prices toward $150 per barrel," said Bridget Payne, Head of Energy Forecasting at Oxford Economics.

Market confusion was further exacerbated by conflicting accounts from President Trump and Israeli Prime Minister Netanyahu regarding the content of their phone conversation concerning the conflict in Lebanon. In the New York market, WTI crude oil futures for July delivery rose 1.7%, settling at $93.76 per barrel.

Brent crude oil futures for August delivery rose 1.1%, settling at $96 per barrel.

Base Metals: Copper and Aluminum Prices Rise

London copper broke through the $14,000-per-ton mark, while London aluminum climbed to its highest level in over four years, as market optimism regarding demand prospects and constrained supply outweighed concerns over the lingering conflict in the Middle East.

Base metals started June on a strong note, driven primarily by expectations of tightening global supply. As the U.S. conflict with Iran remains unresolved, aluminum supply faces pressure; meanwhile, copper traders are bracing for the potential impact of the Trump administration's tariff decisions on supply.

Assets linked to artificial intelligence and the energy transition also saw strong demand, providing further support for metal prices. Tin—used for soldering in electronic products—rose 2.3%, nearing a record high.

"Metal prices are broadly trending upward, driven by factors including supply disruptions for certain commodities resulting from the Middle East conflict, as well as robust structural demand," HSBC analysts wrote in a report. They stated that, with the Strait of Hormuz remaining blocked, commodity markets are facing a "super squeeze."

Bullish forecasts issued by analysts at various institutions also lent support to the rally. Earlier this week, Goldman Sachs raised its year-end copper price forecast by over 10%. Last month, Citigroup stated that the aluminum market is facing its most bullish supply-demand landscape in at least half a century.

At the close of trading:

LME copper futures rose 1.5% to $14,040.50 per ton;

LME aluminum futures rose 1% to $3,752.50 per ton;

LME nickel futures remained largely flat at $19,248 per ton;

LME zinc futures rose 1.8% to $3,641.50 per ton;

LME tin futures rose 2.3% to $57,960 per ton;

LME lead futures rose 1.9% to $2,044.50 per ton. Precious Metals: Gold Prices Pare Gains

Gold prices pared their gains as strong U.S. employment data—released earlier—bolstered market bets that the Federal Reserve will maintain high interest rates for a longer period, creating headwinds for the precious metal.

Data released by the U.S. Bureau of Labor Statistics showed that U.S. job openings in April surged to their highest level in nearly two years, while layoffs declined. Following the data release, gold prices pared gains that had reached as high as 1.3% during Tuesday's trading session. The data further indicated that the labor market remains resilient.

Traders are also assessing fresh signals regarding a potential ceasefire agreement between the U.S. and Iran.

Rhona O’Connell, Head of Market Analysis for EMEA and Asia at StoneX Financial Ltd., stated in a report that the outlook for gold "remains contingent on developments in the Middle East." She noted, "Although some progress has been made, key issues remain unresolved; this implies that gold prices may continue to trade within a range, and—influenced by interest rate expectations—face a downside risk."

As of 4:50 p.m. New York time, spot gold rose 0.1% to $4,489.11 per ounce.

Spot silver rose 0.4% to $75.1631 per ounce.

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