Oil prices climbed as an attack on Saudi Arabia heightened worries about Middle East supply disruptions.
Copper prices fell as a stock market selloff dampened risk appetite.
Gold dropped as rising oil prices fueled inflation concerns, adding pressure on the Fed to raise rates to curb inflation.
Crude Oil: Prices Rise as Saudi Attack Intensifies Middle East Supply Fears
Oil prices rose on Thursday after a deadly attack on Saudi Arabia intensified concerns that an escalation of Middle East conflicts could disrupt supply, even though oil shipments through the Strait of Hormuz had risen back to pre-conflict levels.
Brent crude gained 4%, closing near $113 a barrel, marking its largest increase in about two weeks, while WTI settled above $99 a barrel.
A drone attack on Saudi Aramco's Shaybah oil field killed two people, though operations were unaffected. An attack on King Fahd International Airport in Dammam also caused casualties. Yemen's Houthi rebels additionally claimed to have launched attacks on the Saudi port of Yanbu over the past 48 hours.
The United States ordered some personnel and family members in Saudi Arabia to leave, underscoring concerns about further escalation of regional conflicts. By New York morning trading, intraday gains in oil narrowed as the stock selloff made investors reluctant to make high-risk bets.
Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, said: "Persistent tensions and the risk of renewed escalation after the U.S. midterm elections are providing support for oil prices. As a result, the market struggles to sustain gains, but confidence in selling is equally limited."
December WTI crude rose 2.4% to settle at $99.47 a barrel, while December Brent gained 4% to close at $113.17 a barrel.
Base Metals: Copper Falls as LME Inventories Surge and AI Stocks Sell Off
Copper prices declined as London Metal Exchange (LME) inventories surged, while a selloff in AI-related stocks weakened risk appetite in global markets.
Earnings from major technology companies failed to dispel investor doubts about the sustainability of AI trades. Because copper is widely used in data centers and power infrastructure, prices had benefited from the AI investment boom.
Copper retreated from last month's record high of $14,875 a ton, also affected by uncertainty over whether the U.S. would impose tariffs on refined copper.
At the close, LME copper fell 1.9% to $14,078 a ton.
LME aluminum dropped 1.1% to $3,009.5 a ton.
LME nickel declined 0.7% to $16,120 a ton.
LME zinc fell 2.2% to $3,671 a ton.
LME tin dropped 2.3% to $50,089 a ton.
LME lead slipped 0.6% to $1,897.5 a ton.
Precious Metals: Gold Declines as Middle East Hostilities Escalate and Oil Surges
Gold fell as escalating hostilities in the Middle East drove oil prices sharply higher, increasing pressure on the Fed to raise rates to tame inflation.
After the deadly attack in Saudi Arabia, concerns about regional supply intensified, pushing Brent above $110 a barrel.
The oil spike, combined with renewed worries about the outlook for AI trades, drove global investors toward bonds as a safe haven, sending stocks lower.
Alex Carrier, a portfolio manager at DNCA Finance, said that both rising energy prices and the stock selloff were weighing on gold.
As of 5 p.m. Eastern Time, spot gold fell 2.8% to $4,024.85 an ounce.
Spot silver dropped 5.9% to $54.5713 an ounce.
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