Geopolitical tensions and energy crisis shake commodity markets
The reignited conflict between the US and Iran pushed oil above $95, while a strengthening dollar driven by growing inflation concerns caused drops in gold, silver, and copper prices.
Escalating clashes between the US and Iran and risks to energy flows in the Strait of Hormuz drove oil prices to a five-week high, pushing them above $95 per barrel. This development fueled global inflation concerns, while precious and industrial metals came under pressure.
War Premium Effect on Oil
Following the US's new attacks on Iran, Brent crude rose by up to 2.5% to surpass $95 per barrel, climbing to its highest levels in five weeks.
Potential risks in the Strait of Hormuz, which is critical for global energy trade, threaten Gulf countries' exports by making tanker transits difficult.
Sharp Decline in the Gold Market
Spot gold, the traditional safe haven during geopolitical crises, dropped by $380 per ounce in a single week due to the oil shock, falling to $4,300.
Sinking to a three-week low, gold has given back almost all of its gains since the beginning of the year, carrying a premium of just 0.7% overall in 2026.
Sell-off Wave in Silver and Copper
The selling wave in gold also spilled over into silver, pushing December Comex silver down toward $64 per ounce.
Comex copper, which takes the pulse of the global economy, also dropped 2% to $6.4 per pound, while rising bond yields increased the borrowing costs of the dollar.
Crisis in the European Natural Gas Market
Forming another leg of the energy shock, prices at the Dutch TTF hub in the European natural gas market exceeded 75 euros/MWh, reaching their highest level since early 2023.
With only 63% of EU-wide storage facilities full as of late August, anxiety is mounting ahead of the upcoming winter season.