Traders are watching for signs that the conflict involving Iran could de-escalate, leaving crude prices choppy throughout the session.
Copper fell to its lowest level since July, as shifting U.S. political dynamics threaten the two main bullish forces behind the metal.
Gold declined after a stronger-than-expected U.S. nonfarm payrolls report reinforced speculation that the Federal Reserve will raise interest rates to contain inflation.
Crude Oil: Prices Swing as Traders Eye Iran War De-escalation
Brent crude ended little changed, settling near $98 a barrel. Reports indicated that the United States and Iran are nearing a breakthrough to end the war, with Tehran showing some flexibility on parts of its nuclear program it had previously refused to discuss.
Front-month crude futures fell about 13.2% this week, the largest weekly percentage drop since 2022. Friday's sharp swings extended the recent turbulence, with oil trading in a $19 range since Monday.
"The crude market is largely in a wait-and-see mode on Friday, having bounced off the week's lows but lacking conviction in either direction," said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. "Despite the steady flow of headlines, hard evidence of real diplomatic progress remains scarce."
Any concession from Iran on its nuclear program could accelerate the talks. Before fully reopening the Strait of Hormuz, Iran wants the United States to lift its naval blockade, ease sanctions and unfreeze frozen assets.
Brent crude futures for January delivery settled up 0.03% at $98.32 a barrel. West Texas Intermediate crude for December delivery rose 0.3% to settle at $90.83 a barrel.
Base Metals
Copper dropped to its lowest since July, as changes in the U.S. political landscape could weaken two major bullish drivers: the artificial intelligence infrastructure boom and the risk of U.S. tariffs on copper imports.
After Democrats swept Congress, industrial metals fell alongside a broader risk-off move, with concerns over tighter AI regulation dragging technology stocks lower. Copper is widely used in cables and wiring for data centers and power equipment. The metal fell 2.7% this week, its biggest weekly decline since March.
At the close, LME copper fell 0.6% to $13,768 a ton. LME aluminum was little changed at $3,062.50 a ton. LME nickel rose 0.2% to $16,353 a ton. LME zinc fell 2.2% to $3,711 a ton. LME tin rose 2.2% to $46,467 a ton. LME lead fell 0.5% to $1,885.50 a ton.
Precious Metals
Gold declined after U.S. nonfarm payrolls topped expectations, reinforcing speculation that the Federal Reserve will raise interest rates to curb inflation. After the report, gold fell as much as 1.5%, approaching $4,020 an ounce.
Traders also weighed diplomatic efforts to end the Middle East conflict and the hit to risk appetite from a sharp selloff in AI-related trades. Persistently high energy prices make containing inflation more difficult, and traders have largely priced in a Fed rate hike in December. Tighter monetary policy typically weighs on gold, which pays no interest.
As of 4:30 p.m. New York time, spot gold fell 0.6% to $4,063.34 an ounce. Spot silver rose 0.2% to $51.873 an ounce.
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