Crude oil prices posted their largest single-day gain in a month on Thursday as attacks by Iran on tankers threatened to slow the recent recovery in Middle East oil supply. Gold rebounded from a two-month low as traders weighed the outlook for energy prices, after U.S. President Donald Trump said the United States would not strike Iran before the midterm elections. Elevated oil prices and a selloff in equities weighed on global risk appetite, dragging industrial metals including London copper lower.

Crude Oil: Biggest Gain in a Month

Crude prices posted their biggest gain in a month on Thursday as Iranian attacks on tankers threatened to curb the recent recovery in Middle East oil supply. Brent crude rose 4.1% to settle above $104 a barrel, the highest level since September. While oil transported through the Strait of Hormuz has increased in recent weeks, the frequency of Iranian attacks on vessels in that waterway has also been rising. The first Atlantic hurricane of the year in the U.S. Gulf of Mexico cut production, further supporting crude futures, while surging freight rates pushed the actual prices consumers pay even higher.

Forex.com market analyst Fawad Razaqzada said: "Depleted inventories create ongoing demand for restocking, so the longer-term trend for oil prices will remain biased to the upside." "In the short term, some positive progress toward a U.S.-Iran agreement is needed to bring some relief."

President Donald Trump said the U.S. would not strike Iran again before the November 3 midterm elections, pushing crude futures back from intraday highs. November WTI crude futures rose 3.6% to settle at $91.49 a barrel. December Brent crude futures rose 4.1% to close at $104.28 a barrel.

Copper Falls as High Oil Prices and Stock Selloff Curb Risk Appetite

Elevated oil prices and an equity selloff weighed on global risk appetite, dragging industrial metals including London copper lower. Copper on the London Metal Exchange (LME) fell 1.2% to settle at $14,309 a ton. Losses in copper widened as U.S. stocks came under pressure. The Nasdaq 100 declined as chip stocks were sold off, with concerns about the scale of artificial intelligence spending resurfacing. Oil prices gave back some gains but remained elevated after U.S. President Donald Trump said the U.S. would not attack Iran before the November midterm elections. Rising energy costs intensified inflation concerns and further complicated the outlook for interest rates and economic growth.

LME copper fell 1.2% to $14,309 a ton; LME aluminum fell 2.1% to $3,050.50 a ton; LME nickel fell 1.2% to $15,553 a ton; LME zinc fell 1.2% to $3,718.50 a ton; LME tin fell 5.2% to $51,447 a ton; LME lead fell 1.9% to $1,860 a ton.

Gold Rises After Trump Says U.S. Won't Strike Iran Before Midterms

Gold rebounded from a two-month low as traders assessed the outlook for energy prices, after U.S. President Donald Trump said the U.S. would not attack Iran before the midterm elections. Gold rose as much as 0.9% to around $4,146 an ounce. Trump said Thursday that the U.S. was still engaged in "productive discussions" with Iran but did not provide details, after which the oil rally moderated. Earlier, The Atlantic reported that the White House was considering striking Iran before the November midterm elections. Nevertheless, gold remained on track for a third straight weekly decline. Since the U.S.-Iran war broke out at the end of February, gold has fallen about 20%, as surging energy costs drove inflation higher and prompted central banks to tighten monetary policy, a headwind for non-yielding bullion. Still, central bank gold buying continued to provide some support for prices. Amid geopolitical uncertainty, central bank officials gathered in Italy this week emphasized gold's role in reserve diversification. The market remained focused on the Federal Reserve's next move, with traders now pricing in roughly a 20% chance of a rate hike later this month. Investors were also digesting the latest comments from Fed officials. Spot gold rose 0.5% on Thursday to close at $4,132.50 an ounce. Silver fell 1.0% to $59.17, after dropping 2.5% the previous session. Platinum and palladium gained. The dollar index held steady after rising 0.3% the previous day.