WTI crude oil declined in Asian trading on Wednesday following reports of increased US diplomatic efforts to end the conflict with Iran. This reversed gains from Tuesday, when both WTI and Brent closed higher amid uncertainty over the reopening prospects for the Strait of Hormuz. Copper prices resumed their downward trend as concerns over global inflation and economic growth, fueled by the Middle East conflict, weighed on metal markets. Gold prices halted a nine-day losing streak.

Crude Oil: Prices Rise Again Amid Uncertainty Over Strait of Hormuz Reopening Oil prices climbed again on Tuesday as uncertainty persisted regarding the reopening timeline for the critical Strait of Hormuz shipping route. After a sharp decline on Monday, the global benchmark Brent crude regained momentum, closing near $104.50 per barrel. Prices relinquished most of their gains in post-settlement trading after Israeli media reported that the US is seeking a one-month ceasefire to advance negotiations with Iran. Intraday trading remained highly volatile, with price movements closely tracking developments in the Middle East. US President Trump reiterated that he is engaged in talks with senior Iranian officials to conclude the conflict. Simultaneously, reports indicated that the US plans to deploy approximately 3,000 soldiers from the 82nd Airborne Division to the Middle East. "There is no indication from the military that tensions are de-escalating," said Aaron Stein, Director of the Foreign Policy Research Institute. "Quite the opposite. Everything I see and hear from the US Department of Defense suggests they are preparing for a longer-term operation." Brent crude has surged approximately 40% this month amid fears that conflict involving the US, Israel, and Iran could trigger global energy shortages and drive inflation higher. Oil price gains were also supported by statements from Gulf Arab nations. Informed sources indicated these countries may be compelled to enter the conflict if Tehran attacks their critical infrastructure. May WTI crude rose 4.8%, settling at $92.35 per barrel. May Brent crude increased 4.6%, closing at $104.49 per barrel.

Base Metals Copper prices resumed their decline after a brief rebound the previous day, pressured by concerns that the Middle East war could spur global inflation and hinder economic growth, negatively impacting metal markets. Hopes for de-escalation diminished following widespread denials from Iran regarding peace talks with the US. Additional reports suggested US allies in the Persian Gulf are nearing a decision on whether to join actions against Iran. Israel confirmed that military operations against Iran are ongoing, while Iran has launched attacks on Israeli cities and US military bases in the Middle East. Disruptions to energy production and trade in the Middle East caused by the conflict have elevated oil prices, potentially dampening global economic activity and exacerbating inflation. This may pressure central banks to adopt more hawkish interest rate stances. At the close, LME copper fell 0.6% to $12,100.50 per metric ton. LME aluminum increased 1.9% to $3,260.50 per metric ton. LME nickel declined 0.8% to $16,950 per metric ton. LME zinc dropped 1.2% to $3,042 per metric ton. LME tin rose 0.7% to $44,238 per metric ton. LME lead decreased 0.3% to $1,892.50 per metric ton.

Precious Metals Gold advanced, ending a nine-session losing streak, bolstered by reports that the US is pursuing a one-month ceasefire to facilitate negotiations with Iran. Gold prices climbed as much as 1.7% during Tuesday's late trading session. Nicky Shiels, Head of Metals Strategy at MKS PAMP SA, stated that reports of a ceasefire "boosted market sentiment." Earlier on Tuesday, gold prices oscillated between gains and losses as traders assessed the trajectory of the Middle East conflict. Frank Monkam of Buffalo Bayou Commodities noted that hawkish expectations for US monetary policy and a stronger US dollar were among factors contributing to the recent pullback in gold prices. As of 6:28 PM ET, spot gold was up 1.6% at $4,475.51 per ounce. Spot silver rose 3% to $71.2158 per ounce.