Crude oil futures pulled back as US Treasury Secretary Bessent announced an "unprecedented" campaign to isolate Iran and pressure Tehran into easing its grip on the Strait of Hormuz. Meanwhile, three-month copper contracts on the London Metal Exchange settled at a record high, and gold advanced to its strongest level in over three months, fueled by concerns that aggressive US intervention in the bond market could destabilize fiscal policy and the dollar.

Oil Prices Slide as Traders Weigh Unprecedented US Sanctions Aimed at Isolating Iran

Brent crude for October delivery fell 2.4% to settle at $92.17 per barrel, while WTI crude for the same month dropped 2.4% to $85.01 per barrel. The market is now assessing the potential impact of the new measures, which are designed to choke off Iranian oil exports and increase pressure on Tehran.

Copper Hits Record High on Supply Concerns

The three-month copper contract on the London Metal Exchange rose 0.4% to close at a record $14,273 per tonne. A substantial order to withdraw more than 50,000 tonnes of copper from LME warehouses has reignited worries about severe supply tightness. In recent weeks, inventory levels at the exchange have become a key focus for the industry, with spot prices surpassing futures early last week. Other base metals were mixed on Monday, with aluminum, nickel, and tin posting modest losses, while zinc and lead advanced.

Gold Surges to Three-Month High

Gold prices climbed as much as 1.7% to break above $4,680 per ounce, marking the highest intraday level since mid-May. The metal recorded its third consecutive weekly gain, rising over 5%, after the US Treasury unexpectedly announced plans to at least double the size of its long-term bond buyback operations. The effort to control US debt costs through direct intervention has reignited concerns about inflation and a weaker dollar, reviving the so-called currency debasement narrative that has driven gold up 65% in 2025. Billionaire Ray Dalio last week advised investors to reduce bond holdings and allocate up to 15% of their portfolios to gold as a hedge against a potential US debt crisis he expects within three years. Silver slipped 0.6% to $68.52 per ounce.