[MARKET ANALYSIS] Crude futures rangebound despite another day of US-Iran strikes

Crude futures have been fairly unreactive at the start of Thursday’s trade, despite the tit-for-tat strikes between the US and Iran. Following US President Trump’s threat of strikes at the NATO summit, US CENTCOM announced a fresh wave of attacks against military targets, with multiple areas in southern Iran hit. Bashehr, home of Iran’s nuclear plant, was targeted; no damage to the plant was reported. In retaliation, Iran struck US bases across the Gulf, including Kuwait, Bahrain and Jordan. Iranian officials maintain their stance on the Strait of Hormuz, with Iranian Parliament Speaker Ghalibaf stating it will only open with an Iranian arrangement, not with American threats. On the day thus far, WTI and Brent rotate in their respective USD 73.88-75.13/bbl and USD 78.39-79.18/bbl range. Precious Metals trade in narrow ranges, but holding onto Wednesday’s late bid higher, supported by the softer dollar. Spot gold, currently, trades in a USD 4063-4090/oz range. Taking a hint from ETF inflows, the yellow metal is seemingly finding value around USD 4k/oz, with around USD 8bln of net inflows in H1. 3M LME Copper is firmer, returning above the USD 13.2k/t handle, following positive sentiment in Asia-Pac equities.