DBT Bureau
Pune, 21 Feb 2026
According to a report by Geojit Financial Services, global commodity markets witnessed heightened volatility as geopolitical tensions between the U.S. and Iran supported precious metals and crude oil prices, while mixed signals from the Federal Reserve and rising copper inventories weighed on broader sentiment.
- Precious metals inched higher after President Donald Trump warned Iran that it must reach an agreement regarding its nuclear program within 10 to 15 days or face severe consequences. In response, Tehran warned that it would retaliate by targeting U.S. bases in the region.
- In the meantime, the January FOMC meeting minutes indicated that Federal Reserve officials were broadly aligned on keeping interest rates unchanged for now. However, policymakers were split on the path ahead, with some members opt further rate hikes if inflation fails to ease, while others favored cutting the rates should inflation continue to moderate.
- U.S. inflation eased more than anticipated in January, rising 2.4% annually and 0.2% on a monthly basis, while stronger job growth and a decline in the unemployment rate to 4.3% bolstered the U.S. dollar and pressured bullion.
- Copper inventories across the world’s three largest metal exchanges have surpassed 1 million metric tonnes for the first time in over 20 years, driven by weak demand in China and recent stockpiling in the U.S. Combined stockson the COMEX, LME, and SHFE now stand at 1,012,065 MT.
- Crude oil prices climbed driven by increasing concerns over potential military conflict between the U.S. and Iran as both countries stepped up military activity in the crude oil production and transit regions.
- OPEC+ agreed to keep oil production unchanged for March, but is leaning toward restoring oil output increases starting in April, a move that would help Saudi Arabia and other members such as the UAE reclaim market share at a time when producers like Russia and Iran face Western sanctions and Kazakhstan continues to struggle with production setbacks.
- China’s imports of Russian crude oil are poised to rise for the third consecutive month to a fresh record in February, as independent refiners capitalize on steeply discounted cargoes following India’s sharp reduction in purchases. Russian crude deliveries to China are expected to reach 2.07 million barrels per day in February, up from an estimated 1.7 million bpd in January.
- NYMEX natural gas futures fell to a four month low as the prices were pressured by the forecasts for warmer weather over the next two weeks, which dampened expectations heating demand till the end of February.
