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Oil prices declined for a second straight session on Wednesday, as expectations of renewed dialogue between the United States and Iran raised the possibility that supply from the Middle East could eventually return, following disruptions caused by the closure of the Strait of Hormuz.

Brent crude futures slipped 16 cents, or 0.2%, to $94.63 a barrel at 06:35 GMT, after dropping 4.6% in the previous session. U.S. West Texas Intermediate crude fell 70 cents, or 0.8%, to $90.58, extending a 7.9% loss from the prior day.

The conflict has significantly curtailed flows through the Strait of Hormuz, a critical route for crude and refined products moving from the Gulf to global markets, particularly across Asia and Europe.

U.S. President Donald Trump said negotiations with Tehran aimed at ending the conflict could restart this week, after weekend talks concluded without a breakthrough. At the same time, Washington has enforced a blockade on vessels departing Iranian ports, with military officials stating that seaborne trade to and from the country has effectively been shut down.

Even with a two-week ceasefire in place, shipping activity through the strait remains uncertain, with vessel traffic at only a fraction of the roughly 130 ships that typically transited the passage before the conflict, according to sources cited earlier this week.

“The trajectory of oil prices will likely hinge less on battlefield developments and more on diplomatic momentum. Markets are increasingly reacting to headlines around negotiations rather than troop deployments,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Each signal of renewed dialogue has been met with price declines, suggesting that traders are systematically unwinding the ’war premium’ embedded into crude earlier this month.”

Refiners are scrambling to secure alternative crude supplies, pushing up premiums for oil sourced from regions such as the U.S. Gulf Coast and the North Sea. A cargo of WTI Midland destined for Rotterdam traded at a record premium of $22.80 a barrel above European benchmarks on Tuesday.

A U.S. naval destroyer intercepted two tankers attempting to depart Iran on Tuesday, according to a U.S. official.

“While diplomatic headlines suggest the possibility of renewed U.S.-Iran talks and even a temporary easing of transit restrictions, the physical reality remains fragmented,” the Schork Group said in a note.

Supply concerns could intensify further after U.S. officials told Reuters that Washington will not extend a 30-day waiver on sanctions covering Iranian oil shipments at sea, which expires this week. A similar waiver on Russian oil sanctions was also allowed to lapse over the weekend.

Later in the session, markets will look to official U.S. inventory data from the Energy Information Administration, due at 10:30 a.m. ET (14:30 GMT).

U.S. crude stockpiles were expected to post a modest increase last week, while inventories of distillates and gasoline likely declined, according to a Reuters poll.

Separate data from the American Petroleum Institute showed that U.S. crude inventories rose for a third consecutive week, market sources said on Tuesday.

Gold prices edged lower in Asian trading on Wednesday, pulling back from a one-month peak as investors focused on whether Washington and Tehran will resume negotiations ahead of a ceasefire deadline next week.

The metal had rallied strongly in the previous session, supported by improved risk sentiment after U.S. officials pointed to the possibility of further ceasefire discussions with Iran. Softer U.S. producer inflation data also helped calm concerns about the path of interest rates.

Spot gold slipped 0.6% to $4,815.17 an ounce, while gold futures declined 0.3% to $4,838.40/oz by 02:23 ET (06:23 GMT).

Other precious metals also moved lower, with spot silver down 0.4% to $79.2715 an ounce, while platinum held steady at $2,107.21 an ounce.

Gold buoyed by softer inflation and weaker dollar

Gold had climbed to a one-month high on Tuesday after U.S. producer price index (PPI) data for March came in below expectations.

Broader metals prices also advanced as the dollar weakened following the inflation release.

The PPI data mirrored trends seen in consumer price figures, with headline inflation pushed higher by energy costs, while core inflation showed only modest gains.

This dynamic weighed on the dollar and strengthened expectations that the Federal Reserve may have room to lower interest rates later in the year.

Reinforcing this view, former Federal Reserve Chair and U.S. Treasury Secretary Janey Yellen said she sees scope for a rate cut in 2026.

Lower borrowing costs tend to support non-yielding assets such as gold by reducing the relative appeal of government bonds.

Geopolitics remain key as Iran blockade intensifies

Markets turned cautious as oil prices rebounded on Wednesday after the U.S. military confirmed it had fully implemented a naval blockade on Iran, seen as an effort to pressure Tehran into reaching a peace agreement.

U.S. President Donald Trump said he expects additional ceasefire talks within the next two days and indicated that the conflict could be nearing an end.

The war, now entering its seventh week, has weighed on gold’s performance, as concerns over inflation driven by higher energy prices have dampened its safe-haven appeal.

At the same time, reports suggest both sides remain open to continued dialogue, particularly ahead of the fragile ceasefire set to expire next week. As of Wednesday morning, the truce appeared to be holding.

Light Science Technologies Holdings plc (LSE:LST) has completed the purchase of RLUK Injection Ltd and its subsidiary Injectaclad Ltd, while also acquiring the remaining 10% minority stake in UK Circuits and Electronics Solutions Limited. In addition, the group has finalised a related property transaction, securing full ownership of assets considered central to its operations and future growth.

The consolidation is expected to enhance the company’s operational platform and reinforce its strategic focus on technology-driven markets, particularly those linked to food security and fire safety.

More about Light Science Technologies Holdings plc

Light Science Technologies Holdings plc is an AIM-listed technology and manufacturing group dedicated to delivering practical solutions in areas such as global food security and fire safety. Through a portfolio of specialised businesses and technologies, the company targets long-term opportunities in critical infrastructure and sustainability-focused markets.

Hermès (EU:RMS) saw its shares drop more than 12% in Paris after reporting slower sales growth in the first quarter, with geopolitical tensions linked to the Iran conflict weighing on sentiment across the luxury sector.

The sell-off erased over $20 billion from the group’s market value.

Revenue reached €4.07 billion for the three months to March, representing organic growth of 5.6% year-on-year. This was below the 7.1% consensus forecast referenced by Jefferies and marked a notable slowdown from the 9.8% growth achieved in the previous quarter.

On a reported basis, sales declined compared with last year due to €290 million in adverse currency movements. The reported revenue figure also missed analyst expectations of €4.16 billion, based on a Visible Alpha survey.

Jefferies analysts, led by James Grzinic, estimated that tensions in the Middle East reduced first-quarter revenue growth by around 150 basis points. Wholesale activity—particularly in concession stores and airport locations in the region—was most affected, although the company noted that trends in the Middle East have begun to improve in the second quarter.

Asia-Pacific excluding Japan also underperformed, with growth of just 2.2%, well below the 5.7% consensus and sharply down from 8% growth in the fourth quarter. According to analysts, this slowdown is likely to be a key concern for investors.

“The stock’s poor performance in the run-up to today’s update reflected two fears. Firstly, that of a heavily challenged ME exposure (at c.8% inc travel spend by the cluster outside the region),” they wrote. “Secondly, and more relevant for the broader valuation debate, are concerns around a slowing Chinese momentum.”

“Today’s APAC ex Japan Q1 gain of 2.2% (after 8% in Q4) will be a major point of debate at the 8am UKT call, and a clear source of concern for fundamental investors,” the analysts added.

In contrast, the Americas delivered strong performance, with revenue increasing 17.2%, comfortably ahead of expectations.

Hermès reiterated its medium-term outlook, maintaining its guidance for sales growth at constant exchange rates. “In a still uncertain economic and geopolitical context, the group has moved into 2026 with confidence,” the company said.

Kering (EU:KER) shares fell more than 8% after its flagship brand Gucci reported weaker-than-expected first-quarter sales, weighing on overall group performance. Gucci’s comparable revenue declined 8%, missing analyst expectations for a 6% drop.

Group revenue for the quarter came in at €3.57 billion, slightly below the €3.59 billion consensus, with comparable growth flat overall. This follows declines in the previous two quarters, underscoring ongoing pressure in the luxury sector. Gucci generated €1.35 billion in revenue, falling short of the €1.39 billion expected and dragging the Fashion and Leather Goods division to a 3% comparable decline, compared with forecasts for a smaller drop.

Analysts at Jefferies, which rates the stock “hold” with a €280 price target, said “evidence of a clear turn in Gucci’s brand heat remains patchy,” adding that the upcoming capital markets day was “unlikely to provide a ready-made toolbox of KPIs.”

Regional performance was mixed. North America showed improvement, while Europe also strengthened but remained in negative territory. China continued to decline, and Japan remained challenging. The Middle East reduced group retail comparables by around 70 basis points; excluding this impact, March comparable growth would have been approximately 3% rather than flat.

Other divisions provided some support. Kering Jewellery delivered strong comparable growth of 22%, well above expectations, driven by price increases at Boucheron and new product launches. Kering Eyewear grew 7%, while the Corporate and Other segment posted 10% growth, both exceeding consensus forecasts.

By region, comparable retail sales rose 9% in North America but declined 3% in Japan, 4% in Asia-Pacific excluding Japan, 7% in Western Europe, and 8% in the rest of the world.

Management reiterated its full-year outlook, maintaining expectations for a flat gross margin and indicating a “probable slight improvement” in operating expenses compared with prior guidance. The group continues to target growth across its portfolio in 2026, excluding Alexander McQueen.

Jefferies forecasts full-year 2026 adjusted EBIT of €1.85 billion, below the €1.94 billion consensus, with earnings per share estimated at €6.67 versus consensus of €6.16.

Antofagasta (LSE:ANTO) reported an 8% year-on-year decline in copper production for the first quarter of 2026, though output still exceeded internal consensus estimates, helping lift shares by around 3% following the update. The Chilean miner produced 143,000 tonnes of copper in the period, ahead of the expected 138,000 tonnes, while copper sales fell more sharply, down 19.5% to 137,000 tonnes.

Costs showed significant improvement, with net cash costs falling 30% year-on-year to $1.08 per pound. This was driven by a surge in by-product credits, which more than doubled to $1.69/lb, offsetting a 17% increase in underlying cash costs. Strong gold and molybdenum prices supported this performance, with gold production rising 8% to 46,500 ounces and realised prices climbing 70% to $5,264 per ounce. Molybdenum output remained broadly stable at 3,000 tonnes.

Chief executive Iván Arriagada highlighted the resilience of the company’s asset base and the contribution from by-products. “Our net cash costs during the quarter were 108c/lb at the Group level, including 72c/lb and 34c/lb at Los Pelambres and Centinela respectively,” he said.

Looking ahead, the company expects copper production to increase progressively through the year, supported by higher throughput and improved ore grades at Los Pelambres. “As we move through the year, we expect copper production to increase quarter-on-quarter, with higher processing rates and improving grades at Los Pelambres, in line with the mine plan,” Arriagada added.

Full-year guidance remains unchanged, with copper production forecast at 650,000 to 700,000 tonnes, net cash costs expected in the range of $1.15 to $1.35 per pound, and capital expenditure set at $3.4 billion. Analysts at Morgan Stanley noted that Antofagasta will need to increase its production run rate by around 18% over the remainder of the year to reach the lower end of guidance, leaving limited margin for operational setbacks.

The company also confirmed that key growth projects are progressing as planned. Pre-commissioning work is underway at the Centinela Second Concentrator Project, while construction continues on the Los Pelambres concentrate pipeline and desalination plant expansion. All major developments remain on schedule and within budget, and the group reported no fatalities across its operations so far in 2026.

Ferrexpo (LSE:FXPO) reported a sharp decline in first-quarter production, with output nearly halving as ongoing attacks on Ukraine’s energy infrastructure disrupted operations. The iron ore pellet producer saw its shares fall around 2.6% in early trading following the update.

Total production dropped 45% quarter-on-quarter to 593,000 tonnes, including 525,000 tonnes of premium iron ore pellets and 68,000 tonnes of commercial concentrate. Concentrate output was particularly impacted, plunging as much as 90%, while pellet production rose 27% as the company began restarting one production line toward the end of February.

Interim Executive Chair Lucio Genovese said the weak performance was largely due to sustained damage to Ukraine’s power grid caused by Russian strikes late last year. “By January, given the supply of electricity could not be assured on a sustainable basis at the levels required, we were forced to make the difficult decision to temporarily suspend operations and place our workforce on furlough,” he said.

As electricity availability and pricing conditions improved, Ferrexpo was able to resume limited operations at its Ferrexpo Poltava Mining unit, restarting one pellet production line in late February. However, overall output remains constrained, with the company continuing to operate below full capacity. Exports are ongoing, with rail logistics being used to supply customers across Eastern and Central Europe.

The company also highlighted ongoing financial strain, prioritising cash preservation and cost reductions. Measures include cutting working hours and halting all non-essential capital expenditure. Ferrexpo added that it is exploring potential funding options, including a possible equity raise, although it cautioned there is no guarantee that such initiatives will be successfully completed.

Rank Group Plc (LSE:RNK) lifted its full-year underlying operating profit guidance to at least £68 million, exceeding the top end of analyst expectations and sending shares up more than 8%. The upgrade follows continued like-for-like growth in net gaming revenue (NGR) across all divisions during the third quarter.

The revised outlook surpasses the upper range of analyst forecasts, which had been between £65.1 million and £68.2 million for the 2025–26 financial year. Group like-for-like NGR rose 5% year-on-year to £205.4 million in the third quarter, while year-to-date NGR increased 6% compared with the prior year.

Interim chief executive Richard Harris said the performance highlights “the resilience of the business” and added that, with measures in place to offset higher Remote Gaming Duty and “clear plans in place to drive sustainable revenue growth, the Group is well placed to deliver the medium-term objective of generating at least £100m operating profit.”

Within the divisions, Grosvenor venues—Rank’s largest segment—reported Q3 like-for-like NGR of £95 million, up 5%, with gaming machines delivering the strongest growth at 10%. The company noted some potential uncertainty linked to international travel but still expects continued growth in that segment.

Digital operations also performed positively, with like-for-like NGR rising 4% to £60.9 million. The UK digital business grew 2%, while international digital operations expanded by 14%. Rank has implemented cost-saving measures, including reductions in marketing spend, supplier costs, and headcount, to help offset the impact of Remote Gaming Duty increasing to 40% from April 1, 2026.

Mecca venues generated Q3 like-for-like NGR of £37.8 million, up 5%, and are expected to deliver profit growth in 2026–27, supported by the removal of Bingo Duty from April 2026. Meanwhile, Enracha, the group’s Spanish venues division, was the fastest-growing segment, with Q3 NGR up 9% to £11.7 million, driven by a 27% increase in gaming machine revenue. Year-to-date growth for Enracha stands at 7%.

Looking ahead, Rank expects further year-on-year revenue growth in the fourth quarter. The group also noted that energy price volatility is unlikely to have a material impact on profitability, supported by its hedging strategy.