Commodities Overview: Oil Prices Fluctuate, Copper Prices Drop, Gold Halted Nine Consecutive Losses

WTI fell in Asian trading on Wednesday, as reports said the United States is intensifying diplomatic efforts to end its war with Iran. Earlier, WTI and Brent had risen on Tuesday, supported by uncertainty around the reopening prospects for the Strait of Hormuz. Copper prices resumed their decline, and worries about global inflation and economic growth sparked by the Middle East war weighed on the metals market. Gold prices also stopped their run of nine straight days of losses.

Crude oil: Oil prices rise again; reopening of the Strait of Hormuz remains uncertain

Oil prices rose again on Tuesday, with uncertainty still surrounding when the key shipping chokepoint, the Strait of Hormuz, might reopen.

After a sharp drop on Monday, the global benchmark Brent regained upward momentum on Tuesday, closing at around $104.50 per barrel.

After the settlement, oil prices gave back most of their gains, as Israeli media reported that the United States is seeking a one-month ceasefire to advance negotiations with Iran.

Intraday trading saw sharp swings again, with price action tracking developments in the Middle East.

U.S. President Trump again said he is negotiating with senior Iranian officials to end the war.

At the same time, reports said the United States plans to deploy about 3,000 soldiers from the 82nd Airborne Division to the Middle East.

“There are no signs from the military that the situation is calming down,” Aaron Stein, director of the Institute for Policy Studies, said. “On the contrary. Everything I see and hear from the U.S. Department of Defense indicates that they are preparing for a more long-term operation.”

Because concerns that conflict between the United States, Israel, and Iran could trigger a global energy shortage and drive inflation higher, Brent crude has risen by about 40% this month.

Oil prices also climbed on remarks from Gulf Arab states. According to informed sources, these countries said they might be forced to join the action if Tehran attacks their critical infrastructure.

May WTI crude rose 4.8% to close at $92.35 per barrel.

May Brent crude rose 4.6% to close at $104.49 per barrel.

Base metals

After a brief rebound the day before, copper prices resumed their downward trend. Concerns about global inflation and economic growth caused by the Middle East war weighed on the metals market.

With Iran broadly denying talks with the United States, expectations of a de-escalation have weakened. Other reports said the United States’ allies in the Persian Gulf are nearing a decision on whether to join the action against Iran.

Israel said its military action against Iran is still under way, while Iran attacked Israeli cities and U.S. military bases in the Middle East.

Disruption to energy production and trade in the Middle East from the war has pushed up oil prices, which could drag on global economic activity and intensify inflation. This may prompt central banks in various countries to take a more hawkish stance on interest rates.

As of the close, LME copper futures fell 0.6% to $12,100.5 per metric ton.

LME aluminum futures rose 1.9% to $3,260.5 per metric ton.

LME nickel futures fell 0.8% to $16,950 per metric ton.

LME zinc futures fell 1.2% to $3,042 per metric ton.

LME tin futures rose 0.7% to $44,238 per metric ton.

LME lead futures fell 0.3% to $1,892.5 per metric ton.

Precious metals

Gold rose, ending the prior streak of nine consecutive losing trading sessions. Reports said the United States is seeking a one-month ceasefire to advance talks with Iran.

In late trading on Tuesday, the gold price rose as much as 1.7%. Nicky Shiels, head of metal strategy at MKS PAMP SA, said the reports of a ceasefire “boosted market sentiment.”

Earlier on Tuesday, as traders weighed the direction of the Middle East conflict, gold prices fluctuated back and forth between gains and losses.

Frank Monkam of Buffalo Bayou Commodities said one of the reasons the gold price has recently fallen is investors’ hawkish expectations for U.S. monetary policy and the strengthening U.S. dollar.

As of 6:28 p.m. U.S. Eastern Time, spot gold was up 1.6% at $4,475.51 per ounce.

Spot silver rose 3% to $71.2158 per ounce.

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责任编辑：李桐