Oil prices surged over 3% as Middle East tensions escalated with Houthi attacks on Saudi Arabia and drone strikes on critical infrastructure, while a scheduled diplomatic meeting between Gulf states and Iran was postponed, raising fears of significant global supply disruptions through key shipping routes.
Oil prices could exceed $120 per barrel if Middle East conflict escalates, driven by Houthi control of Red Sea ports threatening shipping and Saudi energy infrastructure. Rising crude costs are fueling inflation concerns and prompting central banks in developed economies to consider interest rate hikes, while Asian governments face pressure to support businesses amid climbing energy prices.
Copper prices hit record highs while smelters operate at losses due to a structural supply squeeze. China controls half of global smelting capacity but faces negative treatment charges as mine supply fails to keep pace with processing capacity, creating a multi-year deficit driven by energy transition demand.