Oil prices edged higher as traders weighed whether the latest conflict between the US and Iran might disrupt a fragile ceasefire, thereby diminishing hopes for a near-term peace agreement. Gold prices advanced. London copper futures surged, recording their largest weekly gain since early October.

Crude Oil: Prices Rise Slightly as Gulf Conflict Threatens Truce Oil prices posted modest gains as traders assessed whether the recent US-Iran clash could jeopardize a delicate ceasefire, weakening prospects for a peace deal in the short term. The global benchmark Brent crude rose 1.2% to settle around $101 per barrel, though it still declined approximately 6% for the week. Despite US officials expressing hope that Iran would soon respond to the latest proposal, renewed conflict in the Persian Gulf unsettled markets. Market attention remained focused on shipping through the Strait of Hormuz, which has been paralyzed since the war broke out in late February. Iran criticized the US for violating the ceasefire agreement, and according to the Tasnim News Agency, Iran is preparing to develop a plan regarding the "legal regime" of the Strait of Hormuz. "Control over the Strait of Hormuz has become Iran's most powerful bargaining chip," wrote analysts including Ben Hoff at Societe Generale in a report. "Recent seizures and harassment of vessels indicate that, while diplomacy remains the base case, there is a material risk of conflict reigniting." US President Trump announced on Friday afternoon that Russia and Ukraine would implement a three-day ceasefire, which briefly pushed oil prices lower. Oil prices fluctuated within a range of about $10 this week, reflecting shifting market expectations regarding the conflict's outlook. June WTI rose 0.6%, settling at $95.42 per barrel. July Brent increased 1.2%, settling at $101.29 per barrel.

Precious Metals: Gold Prices Move Higher Gold prices advanced despite renewed Middle East tensions, showing signs of fresh buying interest. The US struck military targets in Iran after Iran fired on three US Navy destroyers sailing in the Strait of Hormuz. However, Trump stated the ceasefire remained in effect. Ahmad Assiri, an analyst at Pepperstone Group Ltd., noted that the sustained gold-buying momentum by the Chinese central bank "could inspire Asian buyers." He pointed out, "We are currently seeing the market making early preparations for a potential rally," which could follow once the worst of the Middle East conflict passes. As of 4:15 PM New York time, spot gold rose 0.7% to $4,717.94 per ounce. Spot silver increased 2.5% to $80.4146 per ounce.

Base Metals: London Copper Records Largest Weekly Gain in Seven Months London copper futures surged as market expectations grew for an imminent end to the US-Iran conflict, posting the largest weekly gain since early October. On Friday, London copper rose 1.3% to close at $13,573 per ton, its highest closing level since January 29. The price advanced despite clashes between the US and Iran near the Strait of Hormuz. A US-Iran agreement would help boost confidence in the demand outlook for industrial metals. However, as tensions persist, traders are also factoring in rising supply risks. Many mining companies rely on the Gulf region for sulfur supplies—a key raw material in certain copper and nickel production processes. Prolonged disruption to these supplies could put additional pressure on global copper availability, especially against a backdrop of recent disruptions at major mines. PT Freeport Indonesia indicated that its massive Grasberg copper mine might not fully resume production until early 2028, as the company continues to manage a lengthy recovery from last year's incident. With rising expectations for a peace deal, copper prices gained over 4% this week, moving higher alongside global equity markets. A prolonged war could trigger a more severe energy shock, and a slowdown in economic growth would exert greater negative pressure on global metal demand. Grant Sporre, an analyst at Bloomberg Intelligence, stated at the LME Asia Metals Seminar in Hong Kong: "I do believe there is some downside risk for copper in the second half of this year, particularly if the Iran war persists or is not clearly resolved." At the close, LME copper rose 1.3% to $13,573 per ton. LME aluminum increased 0.3% to $3,503 per ton. LME zinc fell 0.8% to $3,430 per ton. LME nickel declined 1.3% to $18,892 per ton. LME tin dropped 1.5% to $53,877 per ton.