Brent crude oil was back above $100-per-barrel on Wednesday after reports claimed gunfire attacks on container ships in the Strait of Hormuz.
Meanwhile, gold on COMEX also climbed 1% on easing fears about an inflation surge and prolonged high interest rates. Silver prices also rose more than 2%.
Additionally, copper prices on the London Metal Exchange rose 1% as US President Donald Trump extended the ceasefire with Iran, which improved risk sentiments.
Brent climbs above $100
After spending the last few sessions below the triple-digit figure, Brent crude oil surged more than 2% on Wednesday to reclaim the $100 mark.
Iran’s Revolutionary Guards Navy seized two container ships and transferred them to Iranian shores on Wednesday, claiming the vessels violated maritime regulations in the Strait of Hormuz, according to the semi-official Tasnim news agency. At least three container ships were struck by gunfire during the incident.
The Strait of Hormuz is a crucial global waterway, historically transporting about 20% of the world’s oil and liquefied natural gas supplies until the Iran war began in late February.
Both Iran and the US have since imposed restrictions on ships using the strait.
Meanwhile, a scheduled peace talk in Pakistan between the two nations did not take place, as neither side attended.
This comes hours after Trump announced an indefinite extension of the ceasefire with Iran, which was nearing its expiration.
The ceasefire announcement was apparently unilateral, leaving it immediately unclear if Iran, or Israel—a US ally—would agree to prolong the truce that began a fortnight ago.
At the time of writing, the Brent contract was at $100.26 per barrel, up 1.8%, while West Texas Intermediate was at $91.35 a barrel, up 1.9%.
“This could be a bluff, and much will now depend on the effectiveness, or otherwise, of the US blockade of Iranian ports around the Strait of Hormuz,” said David Morrison, senior market analyst at Trade Nation.
But as Tehran refuses to come to the table while the US blockade is in place, while continuing to fire on shipping attempting to transit the Strait, the probability increases that this war could last well beyond the end of this month.
Gold climbs
Gold prices saw an uptick on Wednesday due to easing concerns about an inflation surge and persistently high interest rates. The easing of concerns followed the US’s extension of its ceasefire agreement with Iran.
Following the extension of the ceasefire, stocks saw gains, the dollar weakened, and oil prices moved lower.
Meanwhile, Federal Reserve Chair-designate Kevin Warsh’s remarks were perceived as slightly hawkish. On Tuesday, Warsh sought to reassure US senators reviewing his confirmation.
Warsh stated that he had not made any promises to President Trump regarding interest rate cuts, emphasising his commitment to acting independently of the White House. He also indicated that he would pursue broad reforms at the central bank.
At the time of writing, the COMEX gold contract was at $4,763.66 per ounce, up 1%, while silver was at $78.305 an ounce, up 2.4% from the previous close.
If the dollar manages to rally from here, then this looks likely to weigh on both gold and silver in the near-term at least.
Copper rises
Copper prices saw an increase on Wednesday, driven by improved overall risk sentiment following Trump’s extension of a ceasefire with Iran. However, the gains were limited by continued uncertainty regarding the Middle East conflict.
The three-month copper benchmark on the London Metal Exchange saw a 1.3% increase, reaching $13,401 a ton at the time of writing.
A characteristic of the copper market in 2025—the elevated premium of COMEX copper prices compared to the LME global benchmark—has reappeared this month. This renewed premium is incentivising copper shipments to the United States.
Kostas Bintas, global head of metals at trade house Mercuria, expects a sustained flow of copper to the US as long as the price premium remains. This is anticipated to last until July, when a decision is expected regarding potential tariffs on the metal.
Copper inventories are approaching a record high in Comex warehouses, reaching 544,887 tons—a 2% increase since mid-April and close to the February peak of 545,867 tons.
Conversely, stocks in the LME system have recently decreased due to outflows from LME-registered warehouses in Asia, now standing at 395,575 tons.
Meanwhile, the aluminium contract on LME was up 1.9% at $3,601 per ton.
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