Oil soared amid Iran's threats

Tensions in the Middle East have brought the market's attention back to the escalation of hostilities, which has led to a sharp rise in oil prices. Reports of a possible Iranian attack on Israel from Iraq in the coming days forced investors to pay attention to geopolitical risks.

On Friday, Brent and WTI recorded significant growth, exceeding $74.80 and $70.2, respectively. At the beginning of the week, prices fell after a limited Israeli attack in response to rocket fire from Iran, but experts warned that the market «relaxed too quickly.»

Despite some encouraging signals, including the American proposal for a cease-fire in Lebanon and Israel's stated willingness to respond decisively, market participants continue to anxiously observe the growing tensions in the region.

The oil market will be under the close attention of investors in the near future, as a number of key events may significantly affect prices. Next week, the United States will hold presidential elections and a meeting of the highest legislative body in China. Also, the decision of OPEC+ to gradually resume production from December will have significant weight for the price trend.
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Copper rises in price on positive signals from China

Copper futures are rising for the third day in a row on the back of positive economic news from China and expectations of new support measures from Beijing.

Activity in the service sector in China increased last month at the fastest pace since July, and recent data also showed an increase in business activity in the industry. These indicators suggest that China's efforts to stimulate the economy are beginning to have an effect.

According to forecasts, at a meeting of the Standing Committee of the National People's Congress, the Chinese government may announce additional support measures.

Metals, including copper, had previously declined in price as initial optimism about China's stimulus measures gave way to doubts. However, this week the markets will also be watching the results of the US elections, which may add volatility. According to Citigroup, copper on election day has typically grown in nine of the last ten election cycles and may temporarily rise in price to $10,000 per ton amid monetary easing in China and the United States, as well as possible changes in tariffs depending on the outcome of the election.

Copper rose 0.43% on the London Metal Exchange and is trading at $9,724.50 per tonne. Aluminum also rose 0.78% to $2,641 per tonne after reports of a decline in inventories in China to the lowest level since February, according to Shanghai Metals Market.

Iron ore futures rose 1.39% to $103.91 per tonne on the Singapore Stock Exchange, continuing a similar rise since Monday.
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The price of oil is falling amid the rising dollar

On Thursday, the price of oil continued to fall after the US presidential election, succumbing to the pressure of the rising dollar.

The price of Brent decreased by 0.6% to $74.15, and WTI — by 0.88% to $70.97. Experts note that the strengthening of the dollar and weak demand are putting pressure on the price of oil. At the same time, potential price growth factors are associated with the possibility of tougher sanctions against Iran and Venezuela, as well as the risks of geopolitical aggravation in the Middle East.

Analysts believe that in the short term, oil prices may continue to decline unless serious geopolitical events occur. Other experts believe that Trump's policy aimed at supporting business can contribute to the growth of the economy and fuel demand. However, intervention in the Fed's easing policy may have a negative impact on the oil market.

Additional pressure on prices is exerted by a decrease in oil imports to China and an increase in oil reserves in the United States. It is expected that Trump will resume the policy of sanctions against Iranian oil, which may lead to a reduction in supplies. This, in turn, may have an impact on prices in the future.
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