Oil prices recovered as Iran continued to attack energy infrastructure across the Middle East, while Israel claimed it had killed a senior Iranian official. Gold prices remained range-bound. Copper prices on the London Metal Exchange fell, with monitored inventories rising to their highest level in over six years.

Crude Oil: Prices Rebound as Middle East Attacks Heighten Supply Concerns Oil prices climbed as Iran intensified strikes on energy facilities in the Middle East, and Israel announced the elimination of a high-ranking Iranian figure. West Texas Intermediate crude rose 2.9%, settling near $96 per barrel, while Brent crude closed above $100 per barrel for the fourth consecutive session.

The United States reiterated that it had not targeted Iran's Kharg Island oil facilities, citing the extensive time required for reconstruction if such action were taken. Operations at the Shah gas field in the UAE were suspended, and an oil field in Iraq came under drone and missile attack.

The port of Fujairah, the UAE's only crude export route outside the Strait of Hormuz, once again halted oil loading operations. As the conflict entered its third week, these disruptions amplified global supply risks. Shipping through the Strait of Hormuz has nearly ground to a halt, beginning to affect end consumers.

Market sentiment remains hesitant, with many hoping for a swift resolution to the conflict, but prices continue to climb as hostilities persist. In the Middle East, the UAE and Kuwait further reduced oil output, while Saudi Arabia accelerated exports via alternative routes bypassing the Strait of Hormuz.

The scale of supply disruption cannot be easily offset, and the likelihood of prolonged instability in the region is increasing regardless of how the conflict evolves. April WTI crude rose 2.9% to $96.21 per barrel, while May Brent crude gained 3.2% to $103.42 per barrel.

Precious Metals: Gold Holds Narrow Range Gold prices traded within a tight range as traders monitored inflation risks while assessing measures to counter oil supply shocks. Spot gold remained largely stable around $5,000 per ounce, edging lower on Monday. Oil prices resumed their ascent after a brief decline, the first in nearly a week, as Iran escalated attacks on energy infrastructure near the Persian Gulf and the U.S. prepared to release its first batch of emergency crude reserves.

Gold demand has remained relatively stable in recent weeks. As of 4:52 PM New York time, spot gold was down 0.1% at $5,003.03 per ounce, while spot silver fell 1.9% to $79.2644 per ounce.

Base Metals: Copper Declines on LME Copper prices on the London Metal Exchange declined as tracked inventories climbed to their highest level in more than six years, with elevated prices continuing to weigh on physical demand. The benchmark industrial metal fell 0.6%, settling at $12,775 per ton. LME inventories increased by nearly 19,000 tons to 330,375 tons, the highest since September 2019.

Meanwhile, aluminum prices rose after two consecutive days of declines, as uncertainty over the duration of the Iran conflict kept concerns alive over potential further production cuts in the region. The near-total closure of the Strait of Hormuz is hindering metal shipments from smelters and imports of raw materials. Analysts warn that several companies have already reduced output, and the risk of additional shutdowns will intensify if the conflict continues.

Research reports indicate that if the Strait remains blocked for more than one to two weeks, an additional 300,000 to 500,000 tons per year of aluminum smelting capacity in the Middle East could be idled. Market pricing frameworks based on assumptions of a quick resolution have clearly become inadequate.

At the close, LME copper was down 0.6% at $12,775 per ton; aluminum rose 0.1% to $3,399.5 per ton; nickel fell 1.6% to $17,195 per ton; zinc declined 1.3% to $3,227.5 per ton; tin dropped 3.2% to $46,725 per ton; and lead gained 1.3% to $1,929.5 per ton.