Commodities Prices

September’s increase was the fastest since March, just after the U.S.-Iran conflict first began, with prices climbing across energy, agricultural and base metals, while precious metals declined. Energy prices returned close to May’s highs after drone attacks forced Saudi Arabia to shut its East-West pipeline to the Red Sea—a key export lifeline amid the blockade of the Hormuz Strait. Agricultural prices reached their highest average since April 2023, driven by adverse weather linked to the El Niño climate phenomenon and intensifying attacks between Russia and Ukraine. Base metals gained from tight supply, import tariffs, and solid demand tied to the green transition and AI sector. In contrast, precious metal prices fell as the U.S. dollar strengthened and Treasury yields climbed. 

Global commodity prices increased 9.7% month on month in September, following August’s 4.9% rise.