Our weekly commodities overview provides a comprehensive look at market developments, helping you better understand price fluctuations across energy, metals, and agricultural sectors.
Energy: Oil prices are reacting swiftly to the evolving conflict between the United States and Iran. Prices surged yesterday following the suspension of peace negotiations, before retreating today on reports suggesting a resumption of talks. Donald Trump expressed a desire to reach an agreement with Tehran, while the Iranian government also signaled progress in discussions. Negotiators from both countries could meet in Islamabad by the end of the week. In the meantime, volatility is expected to remain high. Regarding forecasts, the International Energy Agency (IEA) is sounding the alarm on demand. The spike in oil prices is directly impacting global consumption. The IEA has revised its demand forecasts downward, anticipating a drop in consumption of 1.5 million barrels per day in Q2. The organization now projects a demand decrease of 80,000 barrels per day for FY 2026. The institution emphasized that current price levels are leading to demand destruction.
Metals: Gold has regained investor favor, marking its second consecutive weekly gain at $4,800 per ounce. The announcement of a temporary two-week truce between the United States and Iran explains this initial progress, as it cools oil prices and, by extension, eases inflationary fears. In industrial metals, copper rose in London to $13,000 per ton, its highest level in three months.
Agricultural Products: Wheat prices recorded their sharpest weekly decline since late July. This slump is a direct result of the monthly report from the US Department of Agriculture, which announced significantly higher-than-expected global stocks. Consequently, wheat bushels are trading lower at 571 cents (May 2026 contracts). Corn prices followed this negative trend to 443 cents, while soybeans remained resilient with a slight increase to 1,166 cents.
