Crude oil prices experienced a sharp increase on Monday, as negotiations to reopen the Strait of Hormuz failed to reach an agreement. Copper prices rose, supported by tightening supply and easing concerns over US interest rate hikes. Gold prices climbed toward $4,400 an ounce, with traders assessing the Middle East conflict outlook and awaiting a key US inflation report.

Oil prices continued their upward trajectory after Iran and Oman failed to finalize an agreement to reopen the Strait of Hormuz. Additionally, European diesel prices surged following an attack on a Saudi refinery near the Red Sea. Brent crude settled near $87 a barrel, after gaining more than 5% over the previous three sessions. Iran stated over the weekend that it was "very close" to a deal, but on Monday reiterated that reopening the Strait of Hormuz requires the US to lift its blockade on Iranian shipping and compensate for losses. A series of attacks in the region kept markets on edge. Another oil tanker operated by the Abu Dhabi National Oil Company was attacked in the Strait of Hormuz over the weekend. Iran-backed Yemeni Houthi militants claimed responsibility for attacking Saudi Arabia's Jazan refinery. Saudi Arabia's Energy Ministry confirmed that a fire at the Jazan facility was extinguished early on Sunday, but did not provide details on the cause. The refinery attack added further pressure to an already tight global diesel market. The disruption to shipping through the Strait of Hormuz has exacerbated the impact of Russia's fuel export ban. Refined product prices are broadly elevated, with US diesel prices rising and European diesel futures surging more than 10% in post-settlement trading. European natural gas futures also spiked as much as 12%. "It appears an agreement to reopen the Strait of Hormuz is not imminent," said Hamad Hussain, climate and commodities economist at Capital Economics. "Unless there are clear signs of a change in the status quo, Brent crude prices are likely to continue fluctuating in the $80 to $90 per barrel range in the near term." West Texas Intermediate crude for September delivery rose 5.1% to settle at $82.13 a barrel, while Brent crude for October delivery gained 5% to settle at $87.72 a barrel.

Industrial metal copper extended its gains after a six-week rally, supported by tightening supply and easing concerns over US interest rate hikes. Copper prices broke firmly above $14,000 per ton last week, as a flood of copper into the US ahead of a potential tariff decision reduced supply in other regions, boosting the global benchmark LME copper price. A measure of near-term market tightness rose to its highest level since October, providing further support for LME copper. At settlement, LME copper rose 0.6% to $14,160 per ton, LME aluminum gained 1.1% to $3,317.50 per ton, LME nickel fell 0.5% to $16,925 per ton, LME zinc added 0.8% to $3,737.50 per ton, LME tin edged up 0.4% to $55,752 per ton, and LME lead increased 0.9% to $1,903 per ton.

Precious metal gold rose to near $4,400 an ounce, as traders evaluated the latest developments around the Strait of Hormuz while waiting for a key US inflation report due later this week. Fawad Razaqzada, market analyst at Forex.com, noted that gold prices fluctuated between gains and losses earlier in the session before breaking through a key technical indicator reflecting a long-term price trend, triggering an increase in technical buying. In recent weeks, gold has moved above the critical support level of $4,000 an ounce. Buying on dips has been strengthening since June, when the war triggered a sharp decline in gold prices, pushing them into a bear market. As of 4:46 p.m. Eastern Time, spot gold rose 1.1% to $4,390.16 an ounce, while spot silver gained 3.5% to $65.7533 an ounce.