Crude oil, aluminium hit 52-week highs; Here’s how West Asia war impacted commodities this week

The joint US-Israel attack on Iran, which began on Saturday, February 28, and its subsequent developments, have had some serious implications for global energy trade, security, and beyond.

From boiling crude oil prices to strategic safe-haven buying in gold, here is how the war in the Middle East impacted commodities this week.

Crude oil

In the international market, Brent Crude oil futures for May delivery surged as much as 8.5% to a 52-week high of $92.69 per barrel on Friday, March 6.

West Texas Index crude contracts (for expiry in May) skyrocketed 14.31% to a year’s high of $92.61 per barrel on Saturday. Over the week, it has increased by more than 36%.

Domestically, on the Multi-Commodity Exchange (MCX), crude oil contracts for April delivery advanced as much as ₹141 or 1.76% to a lifetime high of ₹8,160 per barrel. However, it closed 0.3% lower at ₹7,995 per barrel. It gained more than 31% during the week.

The sharp rally in crude prices came in as Iran announced the closure of the Strait of Hormuz following the joint US-Iraq attack.

The Strait saw 20.9 million barrels passing through it per day in the first half of 2025, as per data from the US Energy Information Administration.

Over the week, Iran widened the scope of its retaliation, which was initially focused on US military assets in the Middle East, to energy facilities in the region.

On Monday, the world’s largest oil refining complexes, the Ras Tanura oil refinery owned by Saudi Aramco in Saudi Arabia, had to halt operations as the debris from an intercepted Iranian drone caused a small fire.

Subsequently, an LNG refinery in Qatar and oil terminals in the UAE, among others, were attacked, leading to operational halts.

Force majeure is a common clause in contracts that frees both parties from liability or obligation in the face of extraordinary events, such as war.

He told Financial Times that this move could send global crude prices surging to $150 per barrel.

Aluminium

Aluminium futures on LME surged to hit a 52-week high of $3,449.50 on Friday. It has rallied 10% over the week. Similarly, on the MCX, aluminium contracts for delivery in March advanced nearly 9% during the week.

This surge in prices comes as the war in the Middle East suffocates the already tight supply backdrop.

According to reports, Qatalum, a major aluminium smelter jointly owned by Hydro and Qatar Aluminium Manufacturing Co., started a controlled shutdown of its aluminium production after its gas supplier signalled a forthcoming halt in gas supply. The shutdown is expected to be completed by the end of March and could take six to 12 months to restart.

Furthermore, Bahrain’s Alba declared force majeure on March 5, halting shipments. It is the world’s largest aluminium smelter outside China. The closure of the Strait of Hormuz also weighed in on the supply crisis. As per ING THINK, the Gulf Cooperation Council (GCC) supplies 8% of the world’s aluminium.

Additionally, aluminium stock in LME-registered warehouses has fallen to its lowest level since July 2025.

Gold

Globally, COMEX gold for April delivery gained as much as 2.11% to hit an intraday high of $5,185 per ounce, as investors sought the safe-haven asset amid rising hostilities in West Asia.

Over the week, however, the contract declined more than 1%, marking its first weekly decline in five weeks, as the US dollar strengthened.

On the MCX, gold futures for expiry in April advanced as much as ₹2,839 or 1.75% to the session’s high of ₹1,62,512 per 10 grams on Friday. It has fallen by 0.3% this week.

The yellow metal prices rose on Friday as the US non-farm payroll data for February failed to meet expectations, as employers cut 92,000 jobs in the US. Furthermore, its unemployment rate rose to 4.4% as jobs declined across key areas, renewing the hope of a rate cut.

According to the CME Group’s Fed Watch, investors bet on a 95.6% probability that the US Federal Reserve will hold policy rates unchanged at its next meeting on March 17 and 18.

Meanwhile, the dollar index, which measures the U.S. dollar's strength against a basket of six currencies, surged by more than 1% during the week.

The report added that many buyers have taken a step back from placing new orders as they’re unwilling to pay exceptionally high shipping and insurance costs with no guarantee of fast delivery.

Silver

COMEX silver for May delivery has fallen 9% over the week, on the back of a strong US dollar.

On the MCX, white metal contracts for expiry in May surged as much as ₹8,309 or 3.17% to hit an intraday high of ₹2,70,500 per kilogram on Friday. However, it slumped 9% over the week.