DBT Bureau
Pune, 25 April 2026
Commodity markets turned mixed, with crude oil surging above $107 per barrel amid escalating Middle East tensions and severe supply disruptions, while precious metals edged lower as rising energy prices reignited inflation concerns and tempered expectations of global monetary easing. Supply risks intensified across energy and industrial metals, driven by disruptions in the Strait of Hormuz, Russian output cuts and geopolitical uncertainties, even as China’s strong copper and aluminium production highlighted resilient demand trends.
- Precious metals edged lower as surging crude oil prices amid persistent Middle East tensions revived inflation concerns and dampened expectations of monetary easing by major central banks. Meanwhile, investors awaited further cues on the stalled peace talks between the U.S. and Iran.
- Tensions rose amid renewed military escalation in the Middle East after Iran released video footage showing commandos seizing a cargo vessel in the Strait of Hormuz, alongside continued delays in reopening the critical shipping route.
- The head of the International Energy Agency (IEA) warned that the escalating conflict involving Iran, the U.S., and Israel is triggering the most severe energy crisis the world has ever experienced.
- Crude oil prices surged, with ICE Brent variant trading firmly around USD107 a barrel shipments through the Strait of Hormuz have nearly ground to a standstill.
- Russia was forced to reduce oil output in April due to Ukrainian drone attacks on ports and refineries, as well as a halt to crude supplies via the only remaining Russian oil pipeline to Europe.
- OPEC+ agreed to raise its oil output quotas by 206,000 barrels per day for May, a modest rise that will largely exist on paper as its key members are unable to raise production due to the U.S.-Israeli war with Iran.
- Emirates Global Aluminium said fully restoring primary aluminium production at its Al Taweelah smelter in the UAE that was hit by an Iranian attack late last month could take up to a year.
- China’s primary aluminium production in March rose 2.7% yoy, as supply fears linked to the Iran conflict supported prices of the light metal. Aluminium production climbed to 3.85 million metric tons in March.
- China’s refined copper output reached a record high in March, defying planned output cut. Refined copper production in March surged 8.7% yoy to 1.33 million metric tonnes, surpassing the record set in December.
Source: Geojit Investments
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