[MARKET ANALYSIS] Crude benchmarks have waned off best levels, spot gold remains below USD 4k/oz

The US continued to strike Iran for a sixth consecutive night. Following that, Iran claimed that power facilities, bridges and civilian infrastructure were struck. And in response, Iran launched its own strikes on Gulf neighbours. More pertinently was a severe warning from the Iranian Army Spokesman. He stated that if the US strike the infrastructure of Iran, all infrastructure in the region will be a legitimate target; he added that “either all countries in the region can export oil or no one can”. Crude benchmarks spent the overnight session in the green, amidst the aforementioned developments. However, benchmarks eventually waned off best levels into the European morning; Brent Sep’26 (+0.5%) holds towards the lower end of a USD 83.71-85.50/bbl range. Spot gold (+0.5%) is incrementally firmer this morning, though still remains just shy of the USD 4k/oz mark, after dipping below that mark in the prior session. Recent pressure has been driven by the ongoing inflationary woes surrounding the latest US-Iran escalation. Nonetheless, some analysts remain confident in the structural drivers for the yellow metal, namely, continued central bank purchases. Elsewhere, base metals are broadly in the red this morning – hampered by the risk tone. 3M LME Copper trades within a USD 13,429-13,563/t range.