DBT Bureau
Pune, 3 March 2026
Global commodity markets entered a phase of heightened volatility as escalating tensions in the Middle East triggered sharp price movements across energy and metals. Following coordinated strikes by the United States and Israel in Iran and renewed disruptions in the strategically vital Strait of Hormuz, investors rushed toward safe-haven assets while concerns over supply chain bottlenecks intensified. Precious metals surged, crude oil prices spiked on shipping disruptions, and base metals advanced amid fears of constrained global flows, even as rising inventories signaled uneven underlying demand conditions.
- Precious metals rallied sharply after the U.S. and Israel carried out major strikes in Iran that killed Supreme Leader Ayatollah Ali Khamenei, heightening geopolitical tensions and adding to global economic uncertainty. Spot gold spiked above USD5400 per troy ounce, while spot silver climbed to around USD96 per troy ounce.
- Gold discounts in India widened to their largest level in ten months as a rebound in prices dampened consumer demand. In contrast, demand in China strengthened, with rising premiums reflecting robust safe haven interest after markets reopened following the Lunar New Year holiday.
- Fighting has damaged several tankers and sharply slowed traffic through the Strait of Hormuz, a critical chokepoint that handles roughly 20% of the world’s oil supply and a comparable share of liquefied natural gas shipments from key Middle Eastern producers.
- Crude prices jumped on Monday after retaliatory Iranian attacks disrupted shipping in the key Strait of Hormuz, following earlier strikes in Iran by the United States and Israel.
- Base metals were broadly trading in positive territory, with aluminium jumping more than 3%, as heightened worries over potential disruptions to shipping through the strategically vital Strait of Hormuz, a key artery for global commodity flows, supported sentiment.
- 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 stocks on the COMEX, LME, and SHFE now stand at 1,012,065 MT.
- OPEC+ is expected to consider boosting its April oil output by 137,000 barrels per day, ending a three month freeze on production hikes, as the group prepares for peak summer demand and rising U.S.–Iran tensions lift prices. The major OPEC+ producers are scheduled to meet on March 1.
- NYMEX natural gas futures edged higher from a four month low as disruptions in key LNG transit regions provided support to prices.
Source: Geojit Investment
