DBT Bureau
Pune, 17 June 2026
According to the latest report from Geojit Investments, global commodity markets remained volatile as optimism surrounding a potential U.S.–Iran peace agreement weighed on crude oil prices, while investors closely monitored the Federal Reserve’s policy decision and key economic indicators from China for further market direction. Following are the key highlights from the report:
- Spot gold stabilized after recovering from a six-month low, driven by optimism over a potential U.S.–Iran peace deal. Meanwhile, investors remained cautious ahead of the Federal Reserve’s policy announcement later today, the first under Chair Kevin Warsh, with interest rates widely expected to remain unchanged.
- US inflation climbed to 4.2% in May, reinforcing expectations that policymakers may tighten monetary policy. Investors are also focusing on the Federal Reserve’s policy decision and commentary this week, the first under Chair Kevin Warsh, with rates broadly expected to stay unchanged.
- Crude oil prices dropped to new three-month lows as markets weighed the potential resumption of supply through the Strait of Hormuz, weak physical demand.
- Middle East crude markets weakened significantly following the U.S.–Iran agreement, which improved global supply expectations. Dubai’s premium to swaps fell to a 46 cent discount, the first contango since January, after reaching USD2.06 per barrel earlier in the week.
- Iranian Foreign Minister Abbas Araqchi said Iran and the U.S. will begin a new round of talks in Switzerland on Friday to finalize an agreement following the interim deal. He cautioned that any Israeli attack on Lebanon or continued presence there would violate the interim agreement.
- China’s May crude imports slumped 29% to their lowest levels in eight years, extending a sharp decline in the world’s largest oil importer that is helping keep a lid on global oil prices. Imports dropped to 33.08 million tonnes, or 7.79 million barrels per day, the lowest level since February 2018.
- China’s copper imports declined 1.33% month-on-month to 446,000 tonnes, with January–May imports at 2.01 million tonnes, down 7% year-on-year.
- China’s aluminium exports rose 5.68% in May to 632,000 tonnes, driven by supply disruptions in the Gulf region linked to the Iran conflict. China’s unwrought aluminium and product exports climbed 5.68% in May to 632,000 metric tonnes.
- China’s industrial production grew 4.5% year-on-year in May 2026, accelerating from a 4.1% rise in April, which was the softest growth since July 2023, and surpassing market expectations of 4.3%.
