[MARKET ANALYSIS] Oil futures remain afloat with Trump vowing to hit Iran hard in response to its retaliation

WTI/Brent: WTI Oct'26 +0.8% / Brent Nobv'26 +0.5%

• Oil prices remain underpinned after gaining yesterday on the US-Iran geopolitical flare-up and with US President Trump vowing to hit Iran hard in response to Iran's retaliation, while there were also reports that a Saudi VLCC stopped after it was struck by projectiles in the Strait of Hormuz.

Gold: -0.1%

• Prices are little changed beneath the USD 4,500/oz level after the prior day's uneventful performance, alongside the recent upside in yields and softer dollar.

Copper: +0.6%

• Gradually edged higher despite the mostly subdued overnight mood, although the latest Chinese RatingDog Manufacturing PMI data provides some encouragement and shows the 10th consecutive month of expansion.

Escalatory rhetoric of this kind against Iran has historically added a risk premium to crude rather than a durable repricing, and the premium has tended to persist only when accompanied by physical disruption, which is what makes the reported strike on a Saudi VLCC in the Strait of Hormuz the operative detail rather than the verbal exchange. Past episodes in which tankers were attacked in or near the strait have moved freight rates, war-risk insurance premia and the front of the crude curve more than flat price, with backwardation steepening as prompt barrels are re-priced against paper length. The distinction worth drawing is between retaliation that stays confined to proxy or missile exchanges, which has tended to fade within sessions, and anything that interrupts actual transit volumes, since a meaningful share of seaborne crude passes through the strait and there is no comparable alternative route at short notice. The follow-ons are whether insurers reprice Gulf loadings, whether any OPEC producer signals supply adjustment, and whether Washington's threatened response is kinetic or sanctions-based, as those paths have historically carried very different durations for the premium. Gold's muted performance alongside higher yields fits the established pattern of the metal's haven bid being capped when real rates rise in tandem. Copper's resilience on continued Chinese factory expansion is consistent with the industrial complex trading on demand data rather than the geopolitical tape.