Global Commodities Surge as Geopolitical Tensions in the Strait of Hormuz Drive Crude Oil and Base Metals Higher

Midday review: Crude oil and lithium carbonate prices jump as Strait of Hormuz tensions rise. Overseas metals outperform domestic markets on April 30.

By: AXL Media

Published: Apr 30, 2026, 11:18 AM EDT

Source: Information for this report was sourced from SMM (Shanghai Metals Market)

Geopolitical Friction Sparks Global Energy Rally

Crude oil prices sustained a vigorous upward trajectory during Thursday’s midday session as the standoff in the Strait of Hormuz shifted from a temporary shock toward a fundamental repricing of energy assets. International benchmarks saw WTI rise by 1.96% while Brent crude climbed 2.16% following reports that the Trump administration is maintaining a maritime blockade against Iranian exports. According to market analysts, early optimism regarding a potential ceasefire in the Gulf has dissipated, replaced by fears of a prolonged disruption to global energy flows. The situation was further aggravated by reports that the U.S. Department of Justice has initiated proceedings to seize Iran-linked tankers intercepted in the Indian Ocean.

Overseas Metal Markets Outpace Domestic SHFE Performance

The international base metals market, particularly on the London Metal Exchange, showed stronger resilience compared to domestic Chinese contracts. As of late morning, LME copper rose 0.42% and nickel gained 0.86%, while domestic SHFE nickel edged down slightly by 0.02%. This divergence highlights a shift in investor sentiment as overseas traders price in supply chain risks and geopolitical instability. While SHFE copper managed a slight gain, other domestic staples like aluminum, lead, and zinc fell between 0.41% and 0.8%, suggesting a more cautious outlook on near-term industrial demand within the Chinese market despite the holiday approach.

Lithium Carbonate and Ferrous Metals Post Gains

In the specialty and ferrous sectors, lithium carbonate emerged as a top performer, with the most-traded contract surging by 2.52% by the midday close. This movement reflects continued volatility and speculative interest in battery-grade materials. Simultaneously, the ferrous complex saw broad-based gains, led by stainless steel, which rose 1.43%, and coking coal, which advanced 1.42%. These increases indicate a localized recovery in construction and manufacturing sentiment, even as other industrial metals struggle to find a clear direction. Iron ore and rebar also followed the trend, posting gains of 0.89% and 0.69% respectively.