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Oil prices remain flat as traders evaluate U.S. Iran talks and the Hormuz closing
Investors assessed the prospects of renewed U.S. Iran talks, and the potential of releasing supply from the Middle East where exports are still restricted by the closure of the Strait of Hormuz. Brent crude futures rose 43 cents or 0.5% to $95.22 per barrel at 821 GMT after dropping 4.6% the previous session. U.S. West Texas Intermediate Crude was down 17 cents or 0.2% to $91.11. The contract fell 7.9% in the previous session. The war has largely closed the Strait of Hormuz. This is a major waterway that allows crude oil and refined products to flow out of the Gulf and be sold globally, especially in Asia and Europe. Donald Trump, the U.S. president, said that talks with Tehran to end the war may resume this week. They ended over the weekend in a deadlock. The U.S. also implemented a shipping blockade that, according to its military on Wednesday, has stopped all trade in and out of Iran by sea. Sources said that despite a two week ceasefire, the transit through the Strait is still uncertain. Only a fraction the number of daily crossings as before the war. The trajectory of oil will depend less on battlefield developments than on diplomatic momentum. "Markets are reacting more to headlines 'around negotiations than troop deployments", said Priyanka Sahdeva, Senior Market Analyst at Phillip Nova. Each signal of renewed dialog has been accompanied by price drops, suggesting that traders have systematically unwinded the "war premium" embedded in crude earlier this month." Refiners desperately seek alternative crude supplies, driving up the premiums that they will pay for oil coming from places such as the U.S. Gulf Coast or North Sea. On Tuesday, a cargo of WTI Midland to be delivered to Rotterdam was traded at a record $22.80 per barrel premium over benchmark European prices. An official from the United States said that a U.S. destroyer prevented two oil tankers leaving Iran on February 2. SEB analyst Ole Hvalbye said that it is not Trump alone who wants to reopen the Strait of Hormuz. "Iran is using its own calculations, and it may be strategically beneficial for the regime to restrict flows even after any peace deal. This could be to extract reparations, ensure security, or to simply inflict pain on the market ahead of the U.S. midterm election. Two U.S. officials said on Tuesday that the U.S. would not renew the 30-day waiver for sanctions against Iranian oil at sea, which expires next week. They also quietly allowed a similar waiver to expire on Russian oil over the weekend. The Energy Information Administration is expected to release official U.S. inventories at 10:30 am ET. ET (1430 GMT). A poll indicated that U.S. crude stockpiles were expected to have increased slightly last week while distillate and gasoil inventories are likely to have decreased. According to market sources who are familiar with American Petroleum Institute data, U.S. crude inventories rose for the third consecutive week on Tuesday. (Reporting from Stephanie Kelly in London; Katya Golubkova, in Tokyo; and Emily Chow, in Singapore. Editing by Christian Schmollinger & Kevin Buckland.
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Sources say that the $2.2 billion Hong Kong listing of Victory Giant is expected to be priced at the top, based on demand.
China's Victory Giant will price HK$209.88 each share at the top of a range, raising HK$17.5billion ($2.2billion) after?receiving a strong demand - from investors, if two sources are to be believed. One source said that the company, which manufactures printed circuit boards used in artificial intelligence servers, and other electronic devices, will also exercise an option to increase the amount of the offering by up to 15%, bringing the total proceeds up to HK$20.2billion. The information was not public yet, so they declined to identify themselves. Victory Giant did not respond immediately to a comment request on Wednesday. According to the prospectus, pricing will be announced on Friday. The deal, if priced at its highest end of range, would indicate that investor demand remains strong for large Chinese technology listings despite the volatility in the Middle East market. According to Dealogic, Victory Giant is expected to offer the largest equity offering in Hong Kong since Zijin Gold’s $3.5 billion deal last September. Huaqin Technology, a Chinese company, launched a Hong Kong stock sale on?Wednesday with a goal of raising HK$4.55billion. This is the latest in a series of large Chinese equity deals that have been made in Hong Kong. Victory Giant - which is already listed in Shenzhen, and whose market value is $39.6 billion, according to LSEG, - launched its offering Monday. Its prospectus stated that it planned to sell 83.35'million shares for up to HK$209.88 per share. The company will begin trading on 21 April. (1 Hong Kong dollar = 7.8357 dollars) (Reporting and editing by Yantoultra Ngui)
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Hancock Prospecting ordered to pay royalties by court
A court on Wednesday ruled that Hancock Prospecting owned by Australia's wealthiest person Gina Rinehart and Rio Tinto had to pay "what could be hundreds of millions" of dollars in royalties to the former business partners of her father. Since 15 years, Hancock Prospecting has been involved in a legal dispute with Peter Wright's family over the Hope Downs Mine Complex in the iron-ore rich Pilbara Region of the state. The court ruled that Rio Tinto, the world's largest iron ore mining company, is a joint venture operator and jointly responsible for the payments. In the 1950s, Rinehart's dad, Lang Hancock and Peter Wright, a former classmate, teamed up to secure the mineral rights of the area which became the Hope Downs mine. In 1969, the two men agreed to a contract with Don Rhodes in which they would receive a small royalty percentage on ore produced by the mine. Local media reported that the lawsuit was primarily about the partnership between Wright, Hancock and the division of their assets in an agreement they negotiated and amended before Wright died?in 1985. The ruling stated that Rhodes' descendants made a claim on the basis of the 1969 agreement. Justice Jennifer Smith, of Western Australia's Supreme Court, ruled that Wright Prospecting, DFD Rhodes and the companies representing descendants of Wright, Rhodes and Wright, should receive a share in past and future royalties from some mines located at Hope Downs. The amount of the royalties?will be determined in a separate court trial. "After many delays we are happy to receive a final result in our favor. This decision is complex and lengthy. Wright Prospecting spokesperson said that they would review the decision in depth before deciding if any further steps are needed. DFD Rhodes didn't immediately respond to our request for comment. Rio Tinto's spokesperson confirmed that the company had acknowledged the court decision and was going to review it in full detail. In a recent statement, Hancock Prospecting Executive Director Jay Newby stated that "Bringing Hope Downs into life required significant investments in exploration, evaluation, and development. This included securing thousands of government approvals and major project financing, as well as a joint-venture partner." He said that Rhodes would receive A$4,000,000 ($2,86,000,000) in royalties per year, and Wright Prospecting about A$14,000,000 per year.
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Appian names Paulo Castellari CEO of Critical Minerals Unit
Appian Capital?Advisory, a mining-focused private equity company, has named former Eramet CEO Paulo Castellari as the head of its critical minerals unit. The?firm announced this on Wednesday, while stepping up?investment into energy transition commodities. The appointment comes at a time when competition is intensifying for battery metals and rare Earths required for electric vehicles and renewable energy, as well as digital infrastructure. Castellari joined?after a sudden exit from French mining company Eramet, only a few months after his appointment, citing disagreements over "operating methods". He held senior positions at Anglo American, Emirates Global Aluminium and Emirates Global Aluminium. Appian said that he would oversee the existing investments in graphite and mineral sands while also pursuing new investment opportunities in commodities vital for energy security as well as future-focused technologies. The company manages assets worth around $5 billion. Castellari was previously Appian's Brazil -assets manager for six years, until 2025. Appian, in October, launched a $1billion fund with the International Finance Corporation of the World Bank to invest into critical minerals projects?in Africa & Latin America. The fund is anchored by an IFC commitment of $100 million and targets nickel, copper cobalt, and rare earths. Michael Scherb said that Paulo's expertise will "play a crucial role" in advancing our projects, and unlocking long-term values for all of our partners, as we continue to expand our critical minerals portfolio. Clara Denina reported. Mark Potter (Editing)
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Japan to invest $10 billion in Asia's oil security
Japan announced on Wednesday that it would establish a financial framework of about $10 billion dollars to assist?Asian nations secure?energy resources? as the Middle East conflict intensified competition for oil. Support, aimed at preventing negative effects on Japan's supply chains, will be?channeled primarily through state-backed institutions like Japan?Bank for International Cooperation? (JBIC), and Nippon?Export and Investment - Insurance (NEXI). The Prime Minister Sanae Taichi announced the plan and said that the assistance would be "equivalent" to '1.2 billion barrels of oil or roughly one year of crude oil imported by the Association of Southeast Asian Nations. She spoke after a meeting with the Asia 'Zero-Emission Community' (AZEC), a Japan-led project aimed at accelerating energy transition and decarbonisation in?Asia. Southeast Asian countries have smaller oil stocks than Japan. This means that supplies of petroleum products, such as naphtha, a vital feedstock for plastics, are becoming increasingly scarce. The disruption of Southeast Asian production is causing anxiety among Japanese healthcare providers who rely on Asia to supply critical supplies like containers, tubes, and gloves. Reporting by Makiko Yazaki and Chang Ran Kim
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Copper nears six-week high on hope of new US-Iran discussions
The copper price rose on Wednesday, extending gains to hover near a 6-week high as the prospect of renewed U.S. - Iran peace talks sparked hopes for a 'de-escalation of Middle East conflict. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading session up 1.38% to 102,090 Yuan ($14.974.70) a metric ton. The contract reached its highest level since March 3, at 103130 yuan, earlier in the day. The benchmark three-month copper price on the London Metal Exchange rose 0.24% to $13,317 per ton, after reaching its highest level since March 2, at $13,392.5. U.S. president Donald Trump said on Tuesday that talks with Tehran to end the war may resume this week. This would send oil prices down and ease concerns about inflation and global economic recession, which could affect demand for industrial metals. The prospect of an improving demand in the top consumer China, while imports fell, also influenced the price of red metal, which is used in construction, power and manufacturing. A researcher at the state-owned China Minmetals Corp. said that refined copper consumption could increase by 3.7% annually on average over the next decade. Both benchmarks have lost some of their earlier gains since the U.S. announced on Wednesday that its military has completely stopped trade entering and leaving Iran by sea. The plan by China to stop exporting sulphuric acids has sparked fears that the acid could have a negative impact on copper and nickel processing. Nickel prices have also risen as disruptions caused by the Iran war forced Indonesian nickel producers to reduce their output by at least 10%. Shanghai nickel prices rose 2.51% while London prices increased 0.65%. SHFE lead climbed 0.36%. Tin?climbed 2.8%. Zinc?climbed 0.27. Aluminium?fell 0.24% due to easing supply concerns. Aluminium gained 0.45% on the LME, while lead and zinc both rose by 0.49%. Tin fell by 0.87%.
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Gold drops on increased risk appetite, US-Iran talks focus
Gold prices fell after reaching a one-month high earlier in the session on?Wednesday. Prospects of another round peace talks between Iran and the U.S. boosted risk appetite while rising oil prices contributed to inflation problems. As of 0731 GMT spot gold was down 0.6% to $4,811.19 an ounce after reaching its highest level since March 18. U.S. Gold Futures for 'June Delivery' fell by 0.3% to $4834.40. Donald Trump, the U.S. president, said that talks to end the Iran War could resume in Pakistan within the next two days after weekend negotiations failed. Marex analyst Edward Meir said that gold prices are reacting to headlines from the Middle East in the short-term with the hope that both countries will engage in dialogue. If things go wrong again, we could revert back to the 'pre-ceasefire' pattern, which was lower gold, a stronger Dollar, and lower stock prices. Bullion has risen by 1.3% this week. Investor optimism about the Iran War causing a possible end to it soon boosted Asian stock prices. Brent oil prices increased amid concerns over the supply of crude from the Middle East's key producing region. The Strait of Hormuz is still largely closed. Inflation is fueled by higher?crude oil prices because they increase transportation and production costs. Gold is a hedge to inflation but higher interest rates are affecting the demand for this non-yielding material. The U.S. Military announced late Tuesday that American forces have stopped all economic trade entering and leaving Iran via sea, through a naval blockade. In the U.S. traders now see a 29% probability of a rate cut by 25 basis points this year. This is up from 13% just last week. Prior to the war, two rate cuts were expected for 2026. Analysts at OCBC wrote in a report that "while gold and silver rallied strongly overnight, there was a broader message of 'decisive risk-on positioning rather than defensive positions. Silver fell by 0.3% per ounce to $79.31, while platinum rose 0.1% to 2,105.21 and palladium remained at $1,586.63. (Reporting by Noel John in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Harikrishnan Nair)
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Stocks, the dollar and fear indexes unwind Wall Street's war.
Financial markets are diverging as the conflict in the Middle East enters its eighth week. The U.S. stock market has?wiped out the losses since the beginning of the war. But oil prices remain punishingly high and are dragging down both government bonds as well as gold. Also, there are dramatic differences in emerging markets. Brazilian markets have risen and China has seen healthy inflows. However, smaller, energy-dependent economies are struggling. Markus Hansen said that the U.S. could manage an oil price shock this long, but Asia was more vulnerable. Hansen said that he used the drop in prices to buy some cheap stocks. He did say, however, that higher prices for oil would cause central banks to delay interest rate reductions. A SHINING STOCK MARKER ON A HILL In the U.S., the benchmark S&P 500 has recovered to its pre-war level. It is up 10% since a low on March 30. The index closed Tuesday at 6,967.38, a close above the February 27 close, just before Israel and the U.S. began airstrikes against Iran. The last week's ceasefire, and the hope that peace talks will resume, are helping. Citi and BlackRock are also bullish about U.S. stocks, citing expectations of resilient corporate earnings in the tech sector. This is a remarkable rebound. The index fell the most in March since the tariff crisis of April 2025. VIX, Wall Street's "fear gauge", is now back to pre-war levels. It spiked to a 10-month high over 35 last month. The stock market volatility is a boon to brokers. Goldman Sachs' and JPMorgan’s first-quarter profits were?helped? by increased trading income. PHYSICALLY COMPLICATED The oil prices have fallen from their highs in March, but are still around $100 per barrel, which is 40% higher than where they were at the end of February. Refiners are paying over $140 per barrel for North Sea crude, for "near-term deliveries". The rate of return to the wartime pre-war period is almost doubled. Brent futures, which are contracts for delivery in the second half of this year, have given some investors comfort. They believe that a resolution will be reached and prices will reach around $83. Even those contracts are higher than before February 28. The December 2027 futures and the March 2027 are both 18% higher. Bonds are being impacted by the high oil prices. The situation on bond markets is different from that of stocks. The cost of borrowing from the U.S. for Europe and Japan is well above the levels before the war. Energy prices that are higher for longer fuel inflation, and make central banks more hawkish compared to before the war. The U.S. Treasury two-year yield is around 40 basis points higher than late-February levels, at around 3.75 percent. However, it has fallen from its March peak. Britain's yield on two-year bonds is 75 basis points higher. Gold has also struggled and is almost 10% lower than pre-war levels. Analysts claim that investors took profits in March by dumping their best-performing assets. CURRENCIES INCLUDED The dollar has largely returned to its pre-war level, and the dollar index (which tracks the U.S. dollar against six other currencies) is just slightly above the closing price of February 27. The greenback's gains post-war were around 3%, but it has?given almost all those back as markets are focused on the hope for a solution that could help limit the worst economic fallout. Investors have reacted to the inflationary shock by 'pricing up rate increases in the Eurozone and Britain but not the U.S. because their currencies are supported. The euro has recovered almost all the losses it suffered in recent weeks. And the pound, which was $1.136 before the conflict, is now back to its pre-conflict level. Exporters of ENERGISED Energy As asset classes have diverged, so too have regions. Europe imports a large amount of energy, unlike the U.S. This has caused the STOXX600 to fall 2% since pre-war and Germany's heavily industrialized DAX to drop nearly 5%. Other countries that import fuel, like Japan and Korea, also have sharply reduced equity values. However, unlike the poorer nations, these nations can still obtain fuel, even if it is expensive. The import-dependent Philippines declared a national crisis, and the small stock market there has fallen?8% in value since the war. Brazil, on the other hand, is a major oil exporter. Its main equity index has risen 5% over pre-war levels and the real currency is up 2.7% against the dollar. Norway's crown has also gained more than 1% against the dollar in developed markets since the start of the war. China, a major oil importer, also has a large reserve, which along with low inflation in the country, helped to boost its government bond market and reduce yields. Green energy stocks in China have also risen.
Iron ore prices rise on the hope that a resolution to the Iran War will revive steel demand
The price of iron ore futures rose on Wednesday, as the prospect of peace talks?to end Iran's war quelled fears about Chinese steel disruptions in the Gulf. Meanwhile, the?rising production of hot metal?continued to?support demand for this steelmaking ingredient.
The September contract for iron ore on China's Dalian Commodity Exchange traded 0.99% higher, at 764 Yuan ($112.06) per metric ton.
As of 0704 GMT, the benchmark May iron ore was trading at $104.5 per ton on the Singapore Exchange.
U.S. president Donald Trump announced on Tuesday that talks to end the Iran War could resume in Pakistan within the next two days. The collapse of the weekend negotiations prompted Washington, which had blocked shipping to and from Iran, to block the traffic.
Zhuo Guqiu, a Jinrui Futures analyst, stated that the war had disrupted trade through 'the Strait of Hormuz. This has led to fewer shipments into the Gulf and a reduction in steel shipments each year in March.
As other countries erected trade barriers, the Gulf became China's second largest steel export destination in 2013. It accounted for 16% of China's record-high steel exports.
According to a Shanghai Metals Market note, iron ore demand is still near its peak in China and this is driving prices.
The World Steel Association announced on Tuesday that global crude steel demand will rise by 0.3% to 1.72 billion metric tonnes this year.
Coking coal and coke, which are both steelmaking ingredients, rose by 1.93% and 3.11 percent, respectively, on the DCE.
Coking coal and coke are in high demand due to the rising production of hot metals. Steel mills report low levels of coke inventories, which leads to urgent purchases.
The benchmarks for steel on the Shanghai Futures Exchange were mostly in positive territory. Rebar rose 0.26%; hot-rolled coils climbed 0.34%; and stainless steel grew 1.54%. Wire rod, on the other hand, lost 0.09%. ($1 = 6.8175 Yuan) (Reporting and editing by Sherry Jacobi-Phillips, Sonia Cheema).
(source: Reuters)