EUROPEAN COMMODITIES UPDATE: Crude softer as we await updates from the US

WTI/Brent: -0.5%/-0.5%

• Crude futures are in the red, after a tentative overnight session awaiting further colour on US involvement in the Israel-Iran conflict.


• In terms of price action, Brent is lower by around USD 0.2/bbl, in a range of USD 75.81 to 77.33/bbl, with geopolitical newsflow this morning light, though for energy specific commentary, Israeli Energy Minister Cohen said Israel's energy sector is operating normally; Iranian Oil Minister says fuel supplies are currently stable, there are currently no issues.


• On Tuesday, crude futures initially saw gains on fears of the US joining the attack on Iran, with some reports suggesting it could be imminent. However, the attack ultimately did not take place, and as such, crude prices trimmed the earlier upside. As a reminder, if the US attack was to take place, it is widely expected to be on Iran’s underground Fordow nuclear facility, which would require US “Bunker Busters” to breach.


• Yesterday, modest upside was seen on a much larger-than-expected draw in private inventories


• On the Strait of Hormuz, the New York Times reported that Iran has prepared for strikes on US bases if the US joins the war, with officials suggesting that in the event of an attack, Iran could begin to plant mines in the Strait.

Gold: -0.1%

• Spot gold is attempting to return to the green, after an overnight session spent mostly in negative territory.


• The yellow metal looks for updates from the US Admin regarding the situation in the Middle-East, along with the FOMC and SEP release, expected to be a placeholder meeting, with the Fed observing a wait-and-see approach.


• Overnight, the haven attempted to move beyond the USD 3,400 mark, where it stalled at USD 3399.99/oz, though it now trades at USD 3,384/oz.

3M LME Copper: +0.2%

• Copper futures are modestly in the green, helped by a softer dollar ahead of the FOMC meeting.


• The red metal has waned in recent trade, and fell from session highs of USD 9,735/t, moving in tandem the USD attempting to pare some losses

18 Jun 2025 - 09:55- ForexGeopolitical- Source: Newsquawk