EUROPEAN COMMODITIES UPDATE: Energy and gold boosted by reports Israel is preparing a possible strike on Iranian nuclear facilities

Crude Oil: WTI Jul +1.4%, Brent Jul +1.4%

• Crude futures are overall underpinned following a CNN report that new intelligence suggested Israel is preparing a possible strike on Iranian nuclear facilities, although it added that it was not clear whether Israeli leaders have made a final decision.
• Oil prices waned off their best levels during APAC trade amid the cautious risk tone across markets.
• The surprise build in private inventories after US hours did little to impact prices much - US Private Inventory Data (bbls): Crude +2.5mln (exp. -1.3mln), Distillates -1.4mln (exp. -1.4mln), Gasoline -3.2mln (exp. -0.5mln), Cushing -0.4mln.
• Aside from that, complex-specific newsflow has been light, WTI resides in a USD 62.20-64.19/bbl range while Brent sits in a USD 65.96-66.63/bbl range.
• Ahead, focus turns to the weekly EIA figures at 15:30 BST / 10:30 EDT.

Nat Gas: Dutch TTF +1.7%

• Firm trade across gas contracts, also buoyed by the aforementioned geopolitics in which intelligence suggested Israel is preparing a possible strike on Iranian nuclear facilities, although it added that it was not clear whether Israeli leaders have made a final decision.
• EU is likely to propose a quota as the mechanism to enforce a bloc-wide import ban on Russian gas by the end of 2027, which officials say should provide companies with a legal basis to terminate long-term purchase contracts, according to Bloomberg.
• Dutch TTF found support at EUR 37/MWh this morning and rose to highs of EUR 37.675/MWh at the time of writing.

Precious Metals: Gold +0.6%, Silver +0.2%, Palladium -1.1%

• Spot gold is kept afloat by dollar weakness and amid the ongoing backdrop of trade and geopolitical uncertainty.
• Macro newsflow this morning has been light.
• Spot gold resides in a USD 3,285.34-3,320.84/oz range at the time of writing after topping yesterday's USD 3,295.79/oz high and now eyeing the 12th May peak at USD 3,325.39/oz.

Base Metals: 3M LME Copper +0.3%

• Base metals overall trade mixed whilst copper futures extends on the prior day's intraday rebound after gaining on a softer dollar and as Asian bourses mostly shrugged off the weak handover from US peers.
• 3M LME copper trades in a USD 9,528.70-9,599.00/t range at the time of writing.
• Dalian iron ore ended daytime trade +0.6% with traders citing the weaker greenback alongside resilient demand from China with steel mills operating at high levels.