Brent crude finished the week at its highest level since April as escalating attacks on Saudi Arabia intensified supply worries already heightened by the US-Iran conflict.
Copper advanced on Friday and narrowed its weekly decline, helped by a easing selloff in technology shares.
Gold fell to its lowest since July as inflation concerns mounted ahead of the Federal Reserve meeting.
Crude Oil: Middle East Supply Risks Push Brent Toward $117, a 6-Month High
Brent crude closed the week at its highest since April as escalating attacks on Saudi Arabia deepened supply concerns that had already been stoked by the US-Iran war. The global benchmark settled below $117 a barrel on Friday, gaining more than 6% for the week, while WTI ended above $103. Iran-backed Houthi militants claimed recent attacks on Saudi Arabia's Red Sea port of Yanbu, as well as deadly strikes on a Saudi oil field and airport. Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, said: "Market fears about an escalation over the weekend are adding fuel to the fire." She added that traders remain nervous "even if geopolitical analysts downplay the possibility." An escalation could widen hostilities around the Strait of Hormuz. In addition, because markets stop trading over the weekend, oil traders are reluctant to hold short positions ahead of the weekend. Several bullish dynamics in the options market are also feeding through to futures. President Donald Trump told reporters at the White House on Thursday that the US had "crushed" Iran and threatened to "go further," without elaborating. The New York Times reported this week that the US and Israel have drawn up plans to strike Iran again after the US midterm elections early next month. WTI crude for December delivery rose 3.8% to settle at $103.27 a barrel; December Brent rose 3.1% to close at $116.72 a barrel.
Base Metals: Copper Pares Weekly Losses
Copper recovered part of its weekly decline as the technology-stock selloff lost momentum, easing concerns about demand for the metal used in data centers and power infrastructure. London Metal Exchange (LME) copper futures rose above $14,300 a ton, narrowing the weekly loss to less than 1%. Speculation that the Trump administration will impose tariffs on refined copper also supported prices, though some traders are starting to doubt whether Washington will act. At the close, LME copper rose 1.7% to $14,322.50 a ton; LME aluminum rose 1.1% to $3,043.50 a ton; LME nickel fell 1.7% to $15,848 a ton; LME zinc rose 2% to $3,743.50 a ton; LME tin rose 0.9% to $50,517 a ton; LME lead rose 0.5% to $1,907.50 a ton.
Precious Metals: Gold Slides
Gold fell to its lowest level since July as energy prices strengthened again ahead of next week's Fed policy meeting and a decline in US consumer confidence reinforced inflation worries. Gold fell as much as 1.2%, trading around $3,975 an ounce. Renewed violence in the Middle East threatened global supply and pushed Brent crude above $115 a barrel. US consumer confidence in October dropped to a five-month low, as high prices and rising interest rates weighed on sentiment. Ryan McKay, a senior commodities strategist at TD Securities, said: "Concerns about oil prices, interest rates and the Fed policy outlook are weighing on gold. Flows are also negative, with heavy selling by commodity trading advisors this week adding pressure." As of 5 p.m. Eastern time, spot gold fell 0.7% to $3,996.10 an ounce; spot silver fell 1.2% to $53.8897 an ounce.
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