[MARKET ANALYSIS] Oil prices rebounded overnight as Iran refutes reports of recent contact with the US

WTI/Brent: WTI Apr'26 +2.6% / Brent May'26 +2.6%

• Oil prices rebounded overnight after the prior day's declines as the Iran war dragged on, but with no major escalation. There was also a further bout of pressure seen in late US trade on reports that US Special Envoy Witkoff and Iranian Foreign Minister Araghchi have been in contact in recent days, although Iran denied this shortly after, which facilitated a mild recovery in oil.

Gold: Flat

• Continues to struggle for directions and trades sideways around the USD 5,000/oz level ahead of looming central bank meetings.

Copper: Flat

• Plateaued overnight after gaining throughout the prior day, alongside the positive risk sentiment.

Oil prices have rebounded due to Iran's denial of recent diplomatic contacts with the US, which alleviated concerns about a potential escalation in tensions. This recovery suggests that geopolitical dynamics continue to play a critical role in influencing commodity prices, and traders should stay alert for further developments as they assess risk sentiment and potential impacts on oil supply. Overall, the situation underscores the volatility that can arise from geopolitical narratives, especially in the energy sector.