Oil prices fell on Wednesday as markets anticipated signals from the United States suggesting a potential end to the Iran conflict, while gold and copper prices rose. Aluminum continued its upward trend due to production disruptions in the Middle East. Investors are closely watching an address scheduled by former President Donald Trump for later in the day, hoping for clues about the direction of the Middle East conflict.
Crude Oil: WTI Declines as Traders Focus on Trump's Remarks Regarding Iran Crude oil prices dropped amid significant intraday volatility, as traders monitored whether former President Donald Trump would announce a swift conclusion to the Iran conflict. WTI futures fell 1.2%, settling just above $100 per barrel, after having declined by as much as 4.8% earlier in the session. Prices came under pressure after Trump posted on his Truth Social platform Wednesday morning that Tehran had requested a ceasefire. However, Iran responded by stating it would not reopen the key waterway due to what it called "absurd moves" by the U.S. leader, adding that the future of the vital shipping route would be decided by Iran and Oman. A White House official indicated that Trump would declare success in the Iran military campaign during a prime-time address Wednesday evening and emphasize that operations could conclude within two to three weeks. "Everyone is holding their breath for tonight's news, ready to hit the buy or sell button at a moment's notice," said Carl Larry, an oil and gas analyst at Enverus. "Opportunities for a sharp drop in oil prices are rare, but right now anything is possible. $100 is a key level; we'll trade around it until the next major headline." May WTI futures declined 1.2%, settling at $100.12 per barrel. June Brent futures settled 2.7% lower at $101.16 per barrel.
Precious Metals: Gold Extends Gains Gold prices extended their gains for a third consecutive session on Wednesday as traders awaited signals from Trump about a potential end to the Iran conflict. Gold rose as much as 2.7% during the day, approaching $4,800 per ounce, building on a 3.5% gain from the previous trading session. Trump is scheduled to address the nation during prime time Wednesday regarding the Middle East conflict, now in its fifth week. An unnamed White House official revealed that Trump would claim success in the military actions in Iran and suggest operations could end within two to three weeks. Bond traders are scaling back bets that central banks will raise interest rates to counter inflation risks stemming from the conflict, shifting their focus instead to the war's impact on economic growth. Federal Reserve Chair Jerome Powell stated earlier this week that longer-term inflation expectations remain anchored. Goldman Sachs remains among the institutions bullish on gold. Analysts from the firm maintained their year-end price target of $5,400 per ounce in a report released Wednesday, citing continued central bank purchases and expectations for two U.S. interest rate cuts this year. As of 3:30 PM ET: Spot gold was up 2.1% at $4,767.29 per ounce. Spot silver rose 0.4% to $75.4765 per ounce.
Base Metals: Copper and Aluminum Advance Copper prices moved higher on Wednesday after Trump suggested the Iran conflict could end within two to three weeks, triggering a relief rally in risk assets that had been pressured by growth concerns. Prices climbed as much as 1.3% following Trump's comments; copper had fallen nearly 8% in March. Meanwhile, aluminum prices continued to rise. Informed sources disclosed that Emirates Global Aluminium, the largest aluminum producer in the Middle East, halted operations at its Taweelah smelter over the weekend following missile and drone attacks by Iran. At the London market close: LME copper futures rose 0.8% to $12,434.5 per ton. LME aluminum futures advanced 1.9% to $3,531.5 per ton. LME nickel futures increased 0.6% to $17,209 per ton. LME zinc futures gained 2% to $3,289.5 per ton. LME tin futures climbed 1.3% to $47,362 per ton. LME lead futures rose 2% to $1,941.5 per ton.
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