Global commodity markets remained volatile on May 15, with energy prices strengthening sharply even as precious and industrial metals faced renewed selling pressure amid inflation worries and uncertainty around global growth trends.

Oil prices moved higher after comments from US President Donald Trump reignited concerns around the geopolitical situation in the Middle East and the security of the Strait of Hormuz, one of the world’s most critical oil transit corridors. Brent crude advanced 1.2 percent to trade near $107 a barrel, while West Texas Intermediate crude for June delivery gained 1.3 percent to around $102.50 a barrel.

The market reaction followed remarks made after Trump’s meeting with Chinese President Xi Jinping, where he indicated that the United States did not require the Strait of Hormuz to remain open. The statement added another layer of uncertainty to already fragile oil markets that have been closely monitoring the Iran conflict and the possibility of supply disruptions in the region.

The Strait of Hormuz remains strategically vital for global energy markets, with a substantial share of the world’s crude shipments passing through the route daily. Any escalation that threatens shipping access typically results in immediate upward pressure on oil prices due to fears of tighter global supply.

The sharp rise in crude prices also comes at a time when inflation concerns are re-emerging globally. Higher oil prices tend to feed directly into transportation, manufacturing, and consumer costs, complicating the policy outlook for central banks already struggling to bring inflation under control.

In the metals segment, price action remained largely weak. Copper prices continued to trade under pressure amid softer industrial demand indicators and concerns around slowing manufacturing activity across major economies. Aluminium and zinc also reflected broader caution in industrial commodities as investors reassessed expectations for global economic expansion.

Industrial metals have increasingly become sensitive to macroeconomic signals rather than pure supply-demand fundamentals. Weakness in manufacturing surveys, slowing trade momentum, and tighter financial conditions have collectively weighed on sentiment across the base metals complex in recent weeks.

Precious metals also remained under pressure, with gold heading toward a modest weekly decline. Spot gold fell 0.6 percent to $4,623.11 an ounce, while silver declined 1.3 percent to $82.47 an ounce. Platinum and palladium also traded lower during the session.

The decline in bullion prices was primarily driven by rising US inflation expectations and the resulting shift in interest rate outlooks. Recent economic data showed that US wholesale inflation accelerated in April at its fastest pace since 2022, while consumer inflation climbed to its highest level since 2023. These readings reinforced market expectations that the US Federal Reserve may keep interest rates elevated for a longer period.

Higher interest rates generally reduce the attractiveness of non-yielding assets such as gold. At the same time, rising Treasury yields and a stronger US dollar further pressured bullion prices. The Bloomberg Dollar Spot Index rose 0.1 percent during the session and remained up 0.9 percent for the week, highlighting continued demand for dollar-denominated safe-haven assets.

For India, the commodity trends carry mixed implications across sectors. Rising crude prices could increase pressure on India’s import bill and widen inflation risks, particularly for fuel-intensive sectors such as aviation, paints, logistics, and chemicals. A sustained increase in oil prices may also complicate the Reserve Bank of India’s inflation management strategy if energy costs begin feeding into broader consumer prices.

On the other hand, weakness in industrial metals may provide some cost relief for domestic manufacturing sectors dependent on imported raw materials, including automobiles, electrical equipment, and infrastructure-linked industries.