SunSirs: Commodities Roundup: WTI Edges Up, Copper Rises, Gold Climbs

WTI crude rose slightly after Iran claimed to have launched fresh strikes against U.S. military bases. Copper prices increased as comments from U.S. President Trump regarding the conflict with Iran eased market fears of escalating tensions in the Middle East. Gold prices climbed after remarks by Federal Reserve Governor Waller prompted traders to scale back bets on Fed interest rate hikes.

Crude Oil: WTI Edges Up; Iran Claims Strikes on Regional U.S. Bases

WTI crude rose slightly after Iran claimed to have launched fresh strikes against U.S. military bases.

WTI fluctuated between gains and losses before ultimately settling near $91 per barrel.

Brent crude edged lower, settling near $95.50 per barrel and snapping a three-day winning streak.

As the U.S. and Iran engage in renewed tit-for-tat military strikes, the recent recovery in crude oil shipments through the Strait of Hormuz faces the risk of reversal.

According to Iran's official news agency IRNA, the Iranian military stated on Thursday that it had launched strikes against U.S. military bases in Kuwait and the UAE.

Kuwait reported dealing with missile and drone threats, while the UAE has not yet reported any related incidents.

Saudi Arabia kept the selling price of its flagship crude unchanged for the coming month; this signaled less market supply tightness than some investors had anticipated, causing oil prices to pull back.

The risk of the conflict expanding is also rising. Israel stated that if Iran launches an attack on Israeli territory, Israel would no longer be bound by existing constraints in its response against Iran.

WTI for October delivery rose 0.3% to settle at $91.30 per barrel;

Brent for November delivery fell 0.1% to settle at $95.52 per barrel.

Base Metals

LME copper prices rose after Trump indicated that any new U.S. military action against Iran would likely be short-lived, easing market concerns about further escalation in the Middle East.

Base metals rallied sharply in August, supported by signs of tightening supply, though investors remain concerned about the global inflation outlook and the risk of potential interest rate hikes by the Federal Reserve. At the close of trading:

LME copper rose 0.8% to $14,333.5/tonne;

LME aluminum rose 0.9% to $3,311.5/tonne;

LME nickel fell 0.8% to $16,786/tonne;

LME zinc rose 1.2% to $3,912/tonne;

LME tin rose 1.3% to $54,952/tonne;

LME lead rose 0.5% to $1,903.5/tonne.

Precious Metals

Gold prices recorded their largest gain in two weeks, driven by a sharp drop in the US dollar against the Japanese yen and traders digesting comments from Federal Reserve officials regarding the interest rate path.

Spot gold surged as much as 2.9%, breaching $4,500 per ounce and marking its largest intraday gain since August 19.

Federal Reserve Governor Waller stated that he would favor keeping interest rates unchanged if the inflation situation improves, prompting traders to scale back bets on Fed rate hikes.

As of 5:00 PM Eastern Time:

Spot gold rose 2.1% to $4,472.92/ounce;

Spot silver rose 2.5% to $66.981/ounce. (Source: Global Market Broadcast)

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