Oil prices declined after the U.S. President suggested a deal with Iran was near, while gold posted its biggest gain in over two months as the dollar and Treasury yields fell. Copper prices dropped, with earlier U.S.-Iran tensions this week stoking demand concerns.

Crude Oil: Prices Slump as Trump Signals Impending U.S.-Iran Deal

Oil prices fell to their lowest levels since April after U.S. President Donald Trump indicated a peace deal with Iran could be signed as soon as this weekend, sparking bets the conflict that has disrupted global energy shipments could end.

The global benchmark Brent crude dropped 2.9%, settling near $90 per barrel.

Brent extended its decline in post-settlement trading after Trump later stated at the White House that the U.S. had "just reached a very good settlement on the war with Iran" and that a signing ceremony could take place in Europe as early as this weekend.

Earlier on Thursday, Trump posted on social media that the U.S. had called off planned military strikes against Iran.

Iran has not formally responded. A semi-official Iranian news agency, citing a source familiar with the talks, reported earlier Thursday that Iran had not approved any text of an agreement with the U.S.

Frank Monkam, head of cross-asset macro strategy and trading at Buffalo Bayou Commodities, noted that the Trump administration's fluctuating messages have "limited the ability of crude oil traders to take on risk aggressively in the market."

The oil market has seen light trading in recent sessions, with many traders forced to reduce exposure. Open interest for Brent fell to its lowest level since March 2025, indicating some investors have been forced to step back for now.

July WTI crude fell 2.6% to settle at $87.71 per barrel.

August Brent crude fell 2.9% to settle at $90.38 per barrel.

Base Metals: Copper Falls for Third Consecutive Session

Copper prices fell for a third straight day as Middle East tensions fueled concerns about rising inflation, higher interest rates, and slowing economic growth.

This followed two consecutive days of U.S. strikes on targets in Iran, further testing a fragile ceasefire, although Trump announced after Thursday's close that planned additional strikes had been called off.

The conflict has roiled global financial markets, pushed up oil prices, and intensified inflation worries, with U.S. inflation in May hitting a more than three-year high.

Zhan Dapeng, an analyst at Everbright Futures, noted in a report that as the conflict escalates, rising expectations for Federal Reserve rate hikes are putting pressure on base metal prices.

At the close, LME copper was down 0.2% at $13,482.5 per metric ton.

LME aluminum rose 1% to $3,502 per ton.

LME nickel edged up 0.1% to $17,693 per ton.

LME zinc gained 0.1% to $3,496 per ton.

LME tin advanced 1.7% to $52,848 per ton.

LME lead fell 0.9% to $1,944.5 per ton.

Precious Metals: Gold Surges on De-escalation Hopes

Gold prices posted their biggest gain in over two months after President Trump stated the U.S. had called off planned military strikes against Iran, raising hopes for a diplomatic end to the conflict.

Gold rose as much as 3.6%. Prices were boosted as U.S. Treasury yields and the dollar fell following Trump's comments about a potential U.S.-Iran deal, supporting the non-yielding asset.

In recent weeks, gold's performance has been pressured. The Iran conflict disrupted energy shipments through the Strait of Hormuz, pushing up oil prices and increasing the likelihood of central banks raising interest rates to combat inflation.

Silver rose 6.2%, while platinum and palladium also moved higher.

As of 5 p.m. U.S. Eastern Time, spot gold was up 3.4% at $4,212.26 per ounce.

Spot silver was up 6.2% at $67.3058 per ounce.