[MARKET ANALYSIS] Crude futures firmer but off best levels despite renewed US strikes on Iranian targets

Crude futures have held onto its post-settlement gains, with Brent trading either side of USD 76/bbl. Post-settlement, the US Treasury revoked Iran’s rights to sell its oil, while a US official stated that Iran’s actions in the Strait will be met with consequences. This lifted the energy complex higher and later, US CENTCOM announced that forces began launching strikes, with explosions heard in Sirik, Qeshm and Bandar Abbas, targeting Iranian weapon launch sites, air defences and more. However, this did not result in any further upside in crude futures as participants telegraphed the US response. Iran released a statement, saying it will take any measure to safeguard its interests and national security. A military response from Iran has been limited, with a similar report stating that Iran fired several anti-ship missiles and drones towards the US Navy.
Precious Metals trades rangebound, with spot gold finding support at the USD 4100/oz handle, despite the renewed US-Iran strikes. Analysts think the yellow metal could test below USD 4k/oz. However, supporting the metal is continued central bank buying, with the PBoC having bought 480k troy ounces of gold in June, its biggest purchase since October 2023.
3M LME Copper is softer, opening below the USD 13.3k/t mark, but has steadily come off lows as risk assets reverse earlier losses.