Commodity markets continued to be driven by geopolitical tensions as the conflict in the Middle East intensified, overshadowing broader macroeconomic developments. Crude oil climbed to fresh five-week highs as supply concerns mounted, while precious metals benefited from increased demand for safe-haven assets. Investors are also monitoring renewed tariff announcements, central bank policy expectations, and a busy week of corporate earnings and U.S. energy inventory data.
Oil & Gas
Crude oil extended its rally for a fourth consecutive session, with WTI crude rising 3.6% to $87.37 per barrel and Brent crude climbing 3.8% to $94.48 as escalating conflict in the Middle East continued to disrupt global energy markets. U.S. airstrikes against Iran expanded overnight, while Iran launched additional drone attacks against regional targets. Shipping through the Strait of Hormuz remained extremely limited, with only three commodity vessels crossing on Tuesday and no visible LNG tankers or very large crude carriers transiting the waterway. Houthi threats in the Red Sea have also prompted additional shipping disruptions, while Chinese refiners have reportedly begun reselling Middle Eastern crude cargoes to capitalize on sharply higher prices.
Natural gas rose 1.7% as above-normal temperatures continued to support electricity demand across much of the United States. Texas set another daily power demand record, while European natural gas prices climbed nearly 4% as storage levels remained well below seasonal norms. Equinor also warned that Europe may struggle to reach its targeted gas storage levels before winter even if shipping through the Strait of Hormuz resumes. Weekly LNG imports into China surged to a 22-month high, highlighting continued global demand for liquefied natural gas.
Investors also focused on corporate earnings and inventory data. API reported an unexpected build in crude inventories ahead of Wednesday’s official Energy Information Administration report, while Range Resources and EQT both reported stronger-than-expected operational results and raised production guidance. Weatherford exceeded revenue expectations despite trimming its second-half outlook to reflect uncertainty surrounding Middle East activity.
Metals & Mining
Precious metals continued to strengthen as investors sought defensive assets amid escalating geopolitical tensions. Gold rose 1.1% to $4,121.90 per ounce, reaching another record high, while silver gained 0.8% to $59.57. Copper eased modestly after its recent rally, although prices remain supported by long-term demand tied to electrification, infrastructure investment, and artificial intelligence. Investors also digested renewed tariff announcements from the White House, including plans for future tariffs on generic pharmaceuticals, while reports suggested the Bank of Japan could tighten monetary policy faster than previously expected.
Mining company news remained active. NOVAGOLD announced it will acquire the remaining 40% interest in the Donlin Gold project, giving it full ownership of one of North America’s largest undeveloped gold deposits. Coeur Mining provided encouraging exploration updates from its Mexican operations, while Lundin Gold continued to expand its Sandia copper-gold project in Ecuador ahead of an initial resource estimate expected in early 2027. Several exploration companies also released positive drilling and production updates across gold, copper, silver, and nickel projects, underscoring continued investment in both precious and critical metals despite ongoing market volatility.
Commodity markets remain firmly driven by geopolitical developments, with escalating conflict in the Middle East continuing to support energy prices and safe-haven demand for gold. While crude oil is benefiting from growing supply concerns and shipping disruptions, natural gas markets are balancing strong seasonal demand with tighter European inventories. In metals, long-term themes such as electrification, infrastructure investment, and critical mineral supply security continue to underpin industrial metals despite short-term volatility. Investors will be watching today’s EIA petroleum inventory report, corporate earnings, and any developments surrounding the Middle East conflict for further direction.
