Crude oil prices held steady; amidst escalating tensions in the Middle East, traders closely monitored progress on a potential agreement between Iran and Oman to restore shipping through the Strait of Hormuz. Copper prices edged lower on Friday but still posted a weekly gain, as signs of tightening supply emerged in the market. Gold prices surged as weak employment data eased concerns about a potential near-term interest rate hike by the Federal Reserve.

Crude Oil: Prices Hold Steady as Traders Weigh Strait of Hormuz Talks and Iran Tensions

Crude oil prices held steady; amidst escalating tensions in the Middle East, traders closely monitored progress on a potential agreement between Iran and Oman to restore shipping through the Strait of Hormuz.

Brent crude settled above $83 per barrel, though it still recorded a third consecutive weekly decline. News regarding the terms and timeline of a potential agreement concerning the Strait of Hormuz continued to influence futures prices. Such an agreement, if reached, could bring millions of barrels of Middle Eastern crude back to the market.

Oil prices pared earlier gains in post-settlement trading following a Reuters report stating that the U.S. would lift its maritime blockade on Iran once an agreement is reached with Oman and commercial shipping resumes "without hindrance."

U.S. Central Command stated on Thursday that 49 commercial vessels had been diverted since the U.S. reimposed its blockade on Iran. Lifting the blockade could return significant oil supplies to the market and pave the way for the full resumption of shipping through the Strait of Hormuz.

Although the issue regarding the Strait of Hormuz appears closer to resolution, threats to shipping persist. The Abu Dhabi National Oil Company reported that three of its vessels were attacked this week while passing through the Strait of Hormuz.

Oil prices had previously risen after Iran attacked "hostile targets" in the Strait on Thursday—following an explosion near Qeshm Island—according to the semi-official Fars News Agency. "An agreement to reopen the Strait of Hormuz remains elusive, and investors are in a wait-and-see mode," said Rob Haworth, senior investment strategist at Bank of America Wealth Management. "Shipping volumes remain low, and the path to a lasting agreement is unclear."

Separately, the U.S. Senate passed a sweeping sanctions bill against Russia, authorizing punitive tariffs on India and other major buyers of Russian oil and gas, while also extending sanctions against Iran.

WTI crude futures for September delivery rose 1.2% to settle at $78.18 per barrel;

In post-settlement trading, the U.S. crude benchmark fell 0.7%;

Brent crude futures for October delivery rose 1.3% to settle at $83.55 per barrel.

Base Metals

Copper prices fell on Friday but still posted a weekly gain.

The copper market is tightening rapidly; a surge in U.S. copper imports, combined with rising orders, is setting the stage for a new rally.

LME copper broke through the $14,000-per-tonne mark this week—a level it has surpassed on only a handful of trading days this year.

Many traders believe copper prices could soon break the all-time high of over $14,500 per tonne set in late January.

At the close, LME copper fell 0.2% to $14,076 per tonne;

LME aluminum rose 0.6% to $3,280 per tonne;

LME nickel rose 1.4% to $17,004 per tonne;

LME zinc fell 1.5% to $3,707 per tonne;

LME tin fell 1% to $55,530 per tonne;

LME lead rose 0.1% to $1,887 per tonne.

Precious Metals

Gold prices surged after a report showed U.S. employers unexpectedly cut jobs in July, extending a rally that began from lows below $4,000 per ounce.

Gold prices rose as much as 3.1% to $4,371.93 per ounce—hitting their highest level since mid-June—before paring gains. Weak employment data may somewhat alleviate market concerns regarding an imminent interest rate hike by the Federal Reserve. Since gold does not generate interest, rate hikes typically exert downward pressure on gold prices.

This employment report pushed gold's cumulative gain for the week to over 7%, marking its largest weekly rise in more than six months.

As of 4:59 p.m. Eastern Time, spot gold was up 2.4% at $4,341.56 per ounce;

Spot silver rose 3.3% to $63.5583 per ounce.

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