Crude oil prices closed higher on Monday as investors grew concerned over the prospects for peace talks between the US and Iran. Copper prices stabilized after two consecutive days of decline. Gold also pared its gains, influenced by Middle East tensions and inflation worries.
Crude Oil: Prices Rise Amid Volatility as US-Iran Negotiations Face Setbacks Oil prices advanced in choppy trading on Monday as market doubts resurfaced regarding the outlook for US-Iran peace talks. WTI crude rose 3%, settling above $108 per barrel, while Brent crude closed near $112 per barrel. Prices climbed as both the US and Iran viewed the latest proposals as insufficient to end the conflict. However, oil gave back some of its gains in post-settlement trading after US President Donald Trump stated he had called off a planned strike on Iran set for Tuesday, following requests from other Middle Eastern nations. Last week, Morgan Stanley noted that the oil market is "in a race against time," suggesting that factors which previously contained price surges from the Iran conflict might fail if a blockade of the Strait of Hormuz persists into June. The International Energy Agency (IEA) reiterated on Monday that global oil inventories are declining rapidly. Prices had dipped earlier after Iran's semi-official Tasnim news agency reported that the US had proposed lifting sanctions on Iranian oil sales before a final deal is reached. However, a US official, speaking anonymously due to the sensitivity of the matter, denied the report without providing further details. Concurrently, the US government issued another waiver allowing the sale of Russian crude and oil products already loaded onto tankers. July WTI crude rose 3.1%, settling at $108.66 per barrel. The June contract expires on Tuesday. July Brent crude increased 2.6%, settling at $112.10 per barrel.
Base Metals: Copper Prices Stabilize Copper prices ended little changed on Monday, stabilizing after a two-day slide as traders weighed mixed signals surrounding US-Iran peace negotiations. President Trump's announcement that he canceled a planned strike on Iran, following calls from Persian Gulf allies for more time to seek a diplomatic solution, was a key focus. Metal traders are monitoring the impact of Middle East developments on global growth, alongside inflation concerns fueled by rising energy costs. Copper edged up 0.2% on Monday, following a cumulative drop of over 4% in the prior two sessions from the record closing high set last Wednesday. At the close of London trading: LME copper rose 0.2% to $13,587.5 per metric ton. LME aluminum increased 0.2% to $3,569 per metric ton. LME zinc fell 0.3% to $3,524 per metric ton. LME nickel gained 0.4% to $18,567 per metric ton. LME tin advanced 0.4% to $52,563 per metric ton. LME lead rose 0.2% to $1,982.5 per metric ton.
Precious Metals: Gold Pares Gains Gold prices trimmed their advance as investors assessed the likelihood of a US-Iran peace deal and the potential for central banks to maintain higher interest rates for longer due to elevated energy prices. Strategists, including Gregory Shearer at JPMorgan, noted in a client report that fresh investment interest in precious metals has "dried up to a trickle" amid concerns over high rates. They suggested that resolving the US-Iran conflict is key to reviving demand, though the market is likely to find support from central bank purchases. Around 3:50 PM New York time: Spot gold was up 0.4% at $4,560.47 per ounce. Spot silver increased 1.8% to $77.3697 per ounce.
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