Commodity wrap: oil prices surge on Iran fears; silver records new all-time high

Oil prices rose sharply on Tuesday due to fears over disruptions in supply from Iran.

Both West Texas Intermediate crude oil and Brent hit multi-month highs on Tuesday, with WTI prices breaching the $60-per-barrel mark for the first time since December 8.

Meanwhile, gold prices were mostly steady around the $4,600 per ounce level amid the release of the US consumer price index data for December.

Silver prices hit new record highs above the $88-per-ounce level as the rally in the white metal continued.

Base metal prices were higher after the release of inflation figures in the US.

Oil surges on fears of disruptions

Oil prices rose for a fourth consecutive session during Asian trading on Tuesday, driven by escalating geopolitical concerns over potential supply disruptions from Iran.

This upward trend comes amid widespread, violent anti-government protests in the OPEC nation, which have reportedly led to heavy casualties following a security force crackdown.

The situation has drawn international attention, with US President Donald Trump warning of potential military action if Iranian authorities continue their use of lethal force against demonstrators.

At the time of reporting, West Texas Intermediate crude oil was trading at $60.36 per barrel, reflecting a 1.8% increase, while Brent crude was up 1.5% at $64.80 a barrel.

The WTI benchmark hit a more than one-month high, while the Brent contract reached its highest point in over seven weeks during the previous trading session.

Additional supply risks emerged from Kazakhstan due to adverse weather and infrastructure issues linked to the Russian–Ukraine conflict.

“All this acted to offset downside pressure on oil due to the possibility of additional supply from Venezuela, at some time in the future,” said David Morrison, senior market analyst at Trade Nation.

Gold steady, silver soars

Gold achieved a new all-time intra-day high of $4,632 on Tuesday after breaking the $4,600 mark for the first time in the previous session.

Despite a subsequent pullback, the downward movement appeared constrained, with prices establishing mild support near $4,570, according to Morrison.

Gold's fundamental support remains strong, driven by expectations of future Federal Reserve interest rate cuts and mounting geopolitical risks.

Safe-haven demand is persistently underpinned by widespread global instability, including heightened concerns about the Fed's independence and the escalating situation in Iran—marked by severe violence against protesters and recent threats from the Trump administration.

After hitting a fresh record high on Tuesday, gold prices settled around the $4,600 an ounce mark, with prices currently hovering near the record high.

Headline inflation in the US rose by 0.3% in December, bringing the annual rate to 2.7%. These figures were in line with Dow Jones forecasts.

The release of the Consumer Price Index (CPI) data followed the December jobs report, which indicated a weaker but still stable labor market.

This context is likely to support the Federal Reserve's decision to postpone interest rate cuts at its first meeting of the year later this month.

Market expectations, according to the CME FedWatch tool, are for two quarter-point rate cuts this year, with the first anticipated in June.

Meanwhile, silver prices on COMEX hit $88.560 per ounce, its highest level in history.

“Silver continues to be extremely volatile, and we can expect big intra-day swings to both the upside and downside for as long as prices remain so elevated, and in the absence of a significant period of consolidation,” Morrison said.

Although silver's rally might well persist, the potential for a significant price drop has also increased, Morrison added.