Oil prices swung lower as traders assessed conflicting signals over the direction of US-Iran peace talks.
Copper fell to a seven-week low as the market weighed the AI trade against the outlook for the US-Iran conflict.
Gold declined as traders avoided building large positions on US midterm election day.
Crude Oil: Oil Swings Lower as US-Iran Peace Talk Prospects Remain Unclear
Oil fluctuated in choppy trading as traders evaluated conflicting signals about the direction of US-Iran peace negotiations.
Global benchmark Brent crude settled below $104 a barrel, with an intraday trading range exceeding $6. European natural gas futures also fell.
Earlier this week, both the US and Iran indicated openness to resolving issues through diplomacy, after which traders have been closely monitoring the progress of peace talks.
Iran said the US response to its demands was "unsatisfactory" and that there has been no new progress toward reaching an agreement with the US, causing crude futures to pare some losses.
Tehran's remarks cast doubt on earlier reports of US-Iran negotiations that had pushed oil prices lower, the latest example of related news repeatedly roiling the market in recent times.
Iran and the US are evaluating the latest proposal from mediators on how to bridge their differences and avoid a new full-scale war.
"Contradictory headlines caused wild price swings this morning, and traders seem reluctant to buy the dip amid the chaos," said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.
Oil prices also drew attention as American voters headed to the polls Tuesday for midterm elections, with US gasoline prices at the pump still above the key psychological threshold of $4 a gallon.
US President Trump and Republicans face growing political pressure from war-driven energy price increases.
Oil had earlier risen by more than $1 as US officials said the US struck Iran's Qeshm Island at the entrance to the key shipping lane of the Strait of Hormuz.
December-delivery WTI fell 0.4% to settle at $96.09 a barrel. January-delivery Brent dropped 1.1% to settle at $103.60 a barrel.
Base Metals: Copper Falls to Seven-Week Low
Copper dropped to a seven-week low as traders assessed the AI trade and the prospect of a diplomatic resolution to the Middle East conflict.
Unverified reports of progress in US-Iran peace talks pushed oil prices lower while driving bond yields and the dollar higher, pressuring dollar-denominated metals including copper.
In recent weeks, concerns over whether AI spending can be sustained have hammered stocks and compounded market worries about global economic growth and metals demand.
At the close, LME copper fell 2.2% to $14,036 a ton; LME aluminum dropped 1.6% to $3,044.50 a ton; LME nickel declined 1.3% to $15,347 a ton; LME zinc fell 2.6% to $3,790.50 a ton; LME tin plunged 4.5% to $47,435 a ton; LME lead slipped 1.1% to $1,884 a ton.
Precious Metals: Gold Declines
Gold fell as traders assessed the prospect of a diplomatic resolution to the US-Iran conflict while avoiding building large positions on US midterm election day.
Reports of US-Iran peace talks pushed oil prices lower and drove bond yields higher, weighing on non-yielding gold.
In recent months, crude oil and gold have mostly moved in opposite directions. Elevated energy prices have boosted expectations for further monetary tightening, which is bearish for gold.
As of 5:16 PM Eastern Time, spot gold fell 0.6% to $3,923.75 an ounce. Spot silver dropped 1.8% to $49.747 an ounce.
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