Oil Surges 25% to Highest Since Mid-2022 as Iran War Sends Commodity Markets Into Chaos

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Published: 4 hours ago

A week into the U.S.-Israeli conflict with Iran, global commodity markets have been severely shaken. Oil prices surged around 25% on Monday, with Brent crude hitting $119.50 per barrel and WTI reaching $119.48, putting Brent on track for its biggest one-day gain ever. Iraq, Kuwait, and the UAE began cutting oil production, while fears of prolonged shipping disruptions through the Strait of Hormuz intensified the rally. Agriculture markets followed, with Malaysian palm oil rising 9%, Chicago soybean oil climbing to its highest since late 2022, wheat hitting its highest since June 2024, and corn reaching a 10-month high. Gold fell more than 2% as a stronger dollar, near a three-month high. Aluminum soared to its highest since March 2022, hitting $3,544 per ton, after Qatari smelter Qatalum and Aluminium Bahrain declared force majeure on shipments.

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