COMMODITIES: Oil steady as investors watch Iran developments
Idag, 13:28
(Alliance News) - The price of oil edged down on Friday, as investors weighed the possible future of the conflict in the Middle East, while gold fell.
Brent for July delivery was trading at USD111.33 around midday on Friday, down from USD114.84 on Thursday. West Texas Intermediate climbed to USD104.45 from USD103.64.
The price of oil steadied on Friday after big swings on Thursday, which sent oil as high as USD126.41, amid fears of a resumption of hostilities in the Middle East.
However, investors still fear a prolonged closure of the Strait of Hormuz, with little sign that the US and Iran are closer to a peace deal.
"Despite the upward trend in oil futures settlements, they still seem detached from reality, downplaying the scale of the crisis on the ground," warned XS.com analyst Samer Hasn.
"The Economist suggests that traders hold three uncertain beliefs: that the US and Iran will soon reach a peace agreement; that this deal will reopen the Strait of Hormuz; and that, once the strait is accessible, fuel and jet fuel supplies will quickly normalise."
Hasn said the "disconnect from reality" is also complicated by geopolitical and physical restraints.
"Even if a deal is reached, demining the strait could take months, and damaged oil wells or mothballed refineries may not immediately return to full capacity," Hasn said.
The analyst added: "While the market trusts that 'things always work themselves out,' experts warn that the world may soon face a massive second inflationary shock that will force governments to shift from supporting demand to managing its destruction."
XTB analyst Kathleen Brooks noted Bloomberg reports that Japanese officials are willing to intervene in the crude oil futures market to stem oil price volatility.
Brooks said: "If this were to happen, this would be a whole new level of intervention in financial markets. It would be a difficult thing to pull off, as oil price moves are due to global supply and demand considerations. If the authorities were to intervene in the futures market, it may look like a limit on buying or selling futures during volatile times. While Japan has not confirmed they will do this, it would be an interesting market dynamic, especially if other countries followed."
Spot gold was quoted at USD4,573.25 an ounce on Friday, down from USD4,635.03 at the same time on Thursday. Silver was slightly lower at USD73.55 an ounce from USD73.85.
This week's central bank meetings saw the US Federal Reserve, the Bank of Canada, the European Central Bank and the Bank of England all leave rates unchanged.
Swissquote analyst Ipek Ozkardeskaya said the central banks' policy outlooks were mixed in tone.
"The ECB decision, for example, initially came across as dovish, until Christine Lagarde said a rate hike was discussed and could come as soon as June, depending on the data. That's the issue: recent data confirmed that the energy shock slowed European growth to near zero in Q1 while pushing inflation to 3%. The question is whether energy-led inflation will spill over salaries and broader economy. If it does, the ECB must act."
Hargreaves Lansdown analyst Matt Britzman said: "Gold is caught between two powerful forces. A weaker dollar is giving it support, but the prospect of higher-for-longer interest rates is stopping the rally from really catching fire.
"Bullion is holding... after reports of Japanese currency intervention knocked the dollar, but the bigger backdrop is still the Middle East, where fading hopes of a US-Iran peace deal and a closed Strait of Hormuz are keeping energy supply fears firmly in play. If tensions stay high, gold's safe-haven appeal may stay intact, but the rate story means this is not quite the one-way trade it might usually be in a geopolitical shock."
Elsewhere, platinum was priced at USD1,975.40 an ounce on Friday, up slightly from USD1,964.07. Palladium advanced to USD1,515.34 an ounce from USD1,499.14.
In base metals, the copper price edged up to USD13,015.40 per tonne from USD12,991.65, and aluminium retreated to USD3,475.52 from USD3,537.26.
By Michael Hennessey, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
COMMODITIES: Oil steady as investors watch Iran developments
Idag, 13:28
(Alliance News) - The price of oil edged down on Friday, as investors weighed the possible future of the conflict in the Middle East, while gold fell.
Brent for July delivery was trading at USD111.33 around midday on Friday, down from USD114.84 on Thursday. West Texas Intermediate climbed to USD104.45 from USD103.64.
The price of oil steadied on Friday after big swings on Thursday, which sent oil as high as USD126.41, amid fears of a resumption of hostilities in the Middle East.
However, investors still fear a prolonged closure of the Strait of Hormuz, with little sign that the US and Iran are closer to a peace deal.
"Despite the upward trend in oil futures settlements, they still seem detached from reality, downplaying the scale of the crisis on the ground," warned XS.com analyst Samer Hasn.
"The Economist suggests that traders hold three uncertain beliefs: that the US and Iran will soon reach a peace agreement; that this deal will reopen the Strait of Hormuz; and that, once the strait is accessible, fuel and jet fuel supplies will quickly normalise."
Hasn said the "disconnect from reality" is also complicated by geopolitical and physical restraints.
"Even if a deal is reached, demining the strait could take months, and damaged oil wells or mothballed refineries may not immediately return to full capacity," Hasn said.
The analyst added: "While the market trusts that 'things always work themselves out,' experts warn that the world may soon face a massive second inflationary shock that will force governments to shift from supporting demand to managing its destruction."
XTB analyst Kathleen Brooks noted Bloomberg reports that Japanese officials are willing to intervene in the crude oil futures market to stem oil price volatility.
Brooks said: "If this were to happen, this would be a whole new level of intervention in financial markets. It would be a difficult thing to pull off, as oil price moves are due to global supply and demand considerations. If the authorities were to intervene in the futures market, it may look like a limit on buying or selling futures during volatile times. While Japan has not confirmed they will do this, it would be an interesting market dynamic, especially if other countries followed."
Spot gold was quoted at USD4,573.25 an ounce on Friday, down from USD4,635.03 at the same time on Thursday. Silver was slightly lower at USD73.55 an ounce from USD73.85.
This week's central bank meetings saw the US Federal Reserve, the Bank of Canada, the European Central Bank and the Bank of England all leave rates unchanged.
Swissquote analyst Ipek Ozkardeskaya said the central banks' policy outlooks were mixed in tone.
"The ECB decision, for example, initially came across as dovish, until Christine Lagarde said a rate hike was discussed and could come as soon as June, depending on the data. That's the issue: recent data confirmed that the energy shock slowed European growth to near zero in Q1 while pushing inflation to 3%. The question is whether energy-led inflation will spill over salaries and broader economy. If it does, the ECB must act."
Hargreaves Lansdown analyst Matt Britzman said: "Gold is caught between two powerful forces. A weaker dollar is giving it support, but the prospect of higher-for-longer interest rates is stopping the rally from really catching fire.
"Bullion is holding... after reports of Japanese currency intervention knocked the dollar, but the bigger backdrop is still the Middle East, where fading hopes of a US-Iran peace deal and a closed Strait of Hormuz are keeping energy supply fears firmly in play. If tensions stay high, gold's safe-haven appeal may stay intact, but the rate story means this is not quite the one-way trade it might usually be in a geopolitical shock."
Elsewhere, platinum was priced at USD1,975.40 an ounce on Friday, up slightly from USD1,964.07. Palladium advanced to USD1,515.34 an ounce from USD1,499.14.
In base metals, the copper price edged up to USD13,015.40 per tonne from USD12,991.65, and aluminium retreated to USD3,475.52 from USD3,537.26.
By Michael Hennessey, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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