Category: Market News

Copper prices surged on Tuesday, touching their strongest levels in over three months as concerns over constrained supply and bullish technical signals continued to support the market.

Three-month copper contracts on the London Metal Exchange climbed 2.7% to $13,943 per metric ton by 1013 GMT, following Monday’s record settlement.

The advance came despite ongoing geopolitical uncertainty linked to the conflict involving Iran. U.S. President Donald Trump said Tuesday that the ceasefire with Tehran was “on life support,” dampening hopes that a peace deal could be reached quickly.

Gold prices moved lower in Asian trading on Tuesday as investors closely followed developments surrounding the fragile ceasefire between the United States and Iran, while also awaiting a highly anticipated meeting between Donald Trump and Chinese President Xi Jinping later this week.

Spot gold declined 0.7% to $4,702.84 per ounce by 02:52 ET (06:52 GMT), while U.S. gold futures slipped 0.4% to $4,710.66 per ounce.

Other precious metals also traded lower, with spot silver falling 2.4% to $84.03 per ounce and platinum declining 3.2% to $2,067.19 per ounce.

Trump Says Iran Truce Remains Under Pressure

Market sentiment remained cautious after Trump criticised Iran’s latest response to a U.S.-supported peace proposal, calling it “a piece of garbage” and warning that the ceasefire remained at risk after weeks of indirect negotiations.

The U.S. president described the truce as being on “massive life support,” raising concerns that tensions in the Gulf could intensify again.

Iranian officials responded by saying the country’s military was prepared to respond forcefully to any “act of aggression.”

Tehran also defended its negotiating position, arguing that demands related to sanctions relief, restoring oil exports and recognition of Iran’s authority over the Strait of Hormuz were justified.

Oil prices stayed elevated on Tuesday amid concerns that additional disruption around the Strait of Hormuz could impact global crude supply flows.

Higher energy prices have limited support for gold, as investors worry that persistent inflationary pressure could prompt the Federal Reserve to keep interest rates elevated for an extended period. Higher rates generally reduce the attractiveness of non-yielding assets such as bullion.

Focus Turns to U.S. Inflation Figures and Trump-Xi Discussions

Investors are also watching closely for Trump’s expected meeting with Xi Jinping in Beijing later this week.

The discussions are expected to cover a range of geopolitical and economic topics, including Iran, Taiwan, trade disputes, artificial intelligence and energy security.

Attention is also shifting toward upcoming U.S. inflation data, especially the Consumer Price Index report due later Tuesday, which could offer additional clues about the Federal Reserve’s future monetary policy direction.

The U.S. Dollar Index gained 0.2% during Asian trading hours, making gold more expensive for investors using foreign currencies.

In base metals trading, benchmark copper futures on the London Metal Exchange slipped 0.3% to $13,848.13 per ton, while U.S. copper futures declined 0.6% to $6.45 per pound.

Oil prices moved higher on Tuesday as investors grew less confident that a near-term agreement could bring an end to the conflict involving the United States, Israel and Iran, pushing supply risks back into focus.

Brent crude futures climbed $2, or 1.9%, to $106.21 per barrel, while U.S. West Texas Intermediate crude rose $2.31, or 2.4%, to $100.38 by 0726 GMT. Both contracts had already gained nearly 2.8% in Monday’s trading session.

Market sentiment shifted after U.S. President Donald Trump suggested that negotiations with Tehran remained deadlocked. Trump said Monday that the ceasefire with Iran was “on life support,” citing unresolved disagreements over several core issues.

Among the sticking points are demands related to ending military operations across all fronts, removing the U.S. naval blockade, restarting Iranian crude exports and compensation for damage caused during the conflict.

Iran also reaffirmed its control over the Strait of Hormuz, the strategically important shipping corridor that handles around 20% of global oil and liquefied natural gas flows.

“Optimism regarding an imminent (peace) deal seems to be fading again and if we don’t see a deal by the end of May, then upside risks for oil prices are definitely on the table,” said DBS Bank energy sector team lead Suvro Sarkar.

Supply disruptions linked to the near shutdown of the Strait of Hormuz have already forced some producers to reduce exports. A Reuters survey released Monday showed OPEC oil production in April dropped to its lowest level in more than two decades.

“A genuine breakthrough toward a peace deal could trigger a sharp $8-$12 correction, while any escalation or renewed blockade threats would quickly push Brent back toward $115+,” said Tim Waterer, chief market analyst at KCM Trade.

Saudi Aramco chief executive Amin Nasser warned Monday that interruptions to oil shipments through the Strait of Hormuz could delay a return to balanced market conditions until 2027, potentially disrupting roughly 100 million barrels of oil per week.

Lower U.S. Crude Inventories Add Pressure to Markets

Concerns around tightening supply were also supported by expectations of declining U.S. crude stockpiles.

Analysts surveyed by Reuters expect U.S. oil inventories to have fallen by roughly 1.7 million barrels last week.

The expected decline comes amid “a backdrop of continued strong net waterborne export flows for crude and products, across the next several weeks,” said Walt Chancellor, energy strategist at Macquarie Group.

Investors Watch Trump-Xi Talks and China Sanctions

Markets are also monitoring the upcoming meeting between President Trump and Chinese President Xi Jinping, scheduled for Thursday and Friday.

The talks follow recent U.S. sanctions targeting three individuals and nine companies accused of helping facilitate Iranian oil shipments to China.

At the same time, tariffs introduced during the U.S.-China trade dispute have effectively halted most Chinese imports of U.S. crude oil and liquefied natural gas. Those imports were valued at approximately $8.4 billion in 2024, the year before Trump returned to office for his second term.

U.S. equity futures traded lower on Tuesday as investors remained cautious over the lack of progress in negotiations between Washington and Tehran, while also awaiting a closely watched U.S. inflation report.

As of 03:28 ET, Dow Jones futures were down 71 points, or 0.1%. Futures tied to the S&P 500 fell 25 points, or 0.3%, while Nasdaq 100 futures declined 193 points, or 0.7%.

Wall Street finished Monday’s session slightly higher, helped largely by continued strength in semiconductor and artificial intelligence-related shares. Investor appetite for AI-linked companies has remained firm despite ongoing geopolitical uncertainty.

Still, analysts at Vital Knowledge argued that broader market conditions appeared less robust beneath the surface.

“[W]e continue to think the price action in chips/components is extremely extended and unsustainable while an Iran deal, to the extent one arrives, is more likely to trigger a sell-the-news response than spur material additional gains (since it’s already assumed that an agreement will be struck),” the analysts wrote in a note.

They also noted that the equal-weight version of the S&P 500 lagged during Monday’s session, while rising government bond yields and higher oil prices added pressure to broader market sentiment.

Iran Negotiations Show Little Sign of Progress

Investor hopes for a near-term breakthrough in U.S.-Iran negotiations weakened further after comments from President Donald Trump suggested talks remained deadlocked.

Speaking to reporters on Monday, Trump said the ceasefire between the two countries was on “massive life support” after dismissing Iran’s latest response to a U.S. peace proposal.

Trump described the Iranian counteroffer as “unacceptable” and later referred to it as “a piece of garbage,” adding that he did not believe it was worth reading in full.

At the same time, concerns about renewed military escalation resurfaced. CNN reported that Trump is seriously considering restarting large-scale combat operations amid frustration over the slow pace of diplomatic discussions.

Some market participants believe Trump’s upcoming trip to China and expected meeting with Chinese President Xi Jinping could potentially help revive negotiations. China remains a major buyer of Iranian crude oil and may play a role in supporting any future peace arrangement.

For now, however, uncertainty surrounding the conflict continues to weigh heavily on the global economic outlook.

Oil Extends Rally Above $105 Per Barrel

Energy prices continued climbing as geopolitical risks remained elevated.

Brent crude futures rose 2.0% to $106.30 per barrel, staying far above pre-conflict levels near $70 earlier this year.

Much of the increase in oil prices has been linked to ongoing disruption in the Strait of Hormuz, the strategically critical shipping route off Iran’s southern coast that normally handles roughly 20% of global oil flows.

The waterway has effectively remained blocked for weeks because of military tensions involving both Iran and the United States, disrupting supply chains and fueling concerns over a broader energy shock.

Trump’s latest remarks reinforced expectations that any resolution could take time, providing further support for crude prices.

Investors Await Key U.S. CPI Report

The surge in oil prices has intensified concerns that inflationary pressures could remain elevated, increasing the likelihood that central banks maintain restrictive monetary policy.

Markets are now focused on Tuesday’s U.S. consumer price index report for further signals on inflation trends.

Economists expect headline CPI for April to rise 3.7% year-on-year, compared with 3.3% in March, largely reflecting higher gasoline prices. On a monthly basis, CPI growth is expected to slow to 0.6% from 0.9%.

Investors will also closely monitor core CPI, which excludes food and energy prices and is widely viewed as the Federal Reserve’s preferred inflation gauge. Core inflation is expected at 2.7% annually and 0.3% monthly, versus 2.6% and 0.2% previously.

The core reading is “ultimately what matters most” for the Federal Reserve, ING strategists said in a note.

“Still, it is probably too early to expect clear evidence of second round effects,” they added.

Sam Altman Faces Growing Republican Scrutiny

Separately, Sam Altman is reportedly facing increasing scrutiny from Republican lawmakers and several Republican state attorneys general ahead of a potential public listing of OpenAI later this year.

According to the Wall Street Journal, the Republican-led House Oversight Committee has launched an investigation into potential conflicts of interest involving Altman’s personal investments and OpenAI’s business relationships.

The committee has reportedly requested documents concerning OpenAI’s governance practices and ties to companies backed by Altman.

The newspaper also said Republican attorneys general from Florida, Montana, Nebraska, Iowa, West Virginia and Louisiana have urged the U.S. Securities and Exchange Commission to review OpenAI’s governance structure before any IPO proceeds.

The scrutiny follows earlier reports that Altman had encouraged OpenAI to support companies in which he held personal stakes, including nuclear fusion startup Helion and aerospace company Stoke Space.

European equities moved sharply lower at Tuesday’s open as investors grew increasingly concerned that negotiations between the United States and Iran remain far from a lasting resolution.

By 07:04 GMT, the pan-European Stoxx 600 index had declined 1.2%. Germany’s DAX dropped 1.4%, while London’s FTSE 100 and France’s CAC 40 both lost around 1.1%.

Market sentiment weakened after comments from U.S. President Donald Trump suggested that diplomatic progress between Washington and Tehran had stalled. Speaking to reporters on Monday, Trump said the fragile ceasefire was on “massive life support.”

Earlier in the day, Trump had rejected Iran’s latest response to a U.S. proposal aimed at ending the conflict, calling it “unacceptable” before later describing it as a “piece of garbage.”

Iranian officials responded by defending their proposal as “generous and responsible,” with discussions continuing to centre on the reopening of the Strait of Hormuz.

The strategically important shipping route off Iran’s southern coastline has remained effectively disrupted for weeks, constraining global oil flows and heightening concerns about a broader energy supply shock.

“The Middle East returned to the headlines over the weekend, and any normalization of Hormuz shipping now looks delayed,” said Felix Vezina-Poirier, Chief Strategist at BCA Research, in a note.

Oil markets reacted with renewed gains. Brent crude futures climbed 2.0% to $106.30 per barrel, remaining significantly above levels near $70 seen before the conflict escalated.

The renewed rise in oil prices has intensified concerns over inflationary pressures globally, fuelling expectations that central banks may need to maintain tighter monetary policy or raise interest rates further.

At the same time, European government bond yields moved higher, adding additional pressure to equity markets as investors adjusted expectations for borrowing costs and economic growth.

IMI plc (LSE:IMI) delivered a positive first-quarter trading update, reporting mid-single-digit organic constant currency sales growth while maintaining its full-year guidance.

The engineering group said organic constant currency sales increased 5% year-on-year during the quarter, with reported sales growth reaching 6%.

Process Automation delivered organic constant currency sales growth of 6%, although orders declined slightly by 1% against a particularly strong comparative period. Industrial Automation sales also rose 6%, benefiting from recovery following disruption caused by a cyber incident in the prior year period.

Life Technology reported organic constant currency sales growth of 4%. Within the division, Climate Control sales increased 4%, supported by continued demand from data centre and liquid cooling applications.

Life Science and Fluid Control sales grew 1%, with the company citing resilient healthcare demand and signs of stabilisation across life science device markets.

The Transport division delivered particularly strong performance, with organic constant currency sales rising 9%. Management also highlighted operational improvements in working capital resulting from an ongoing strategic review within the business.

IMI said the conflict in the Middle East has had only a limited effect on operations so far, noting that the impact on orders and revenue has not been significant. The region accounts for roughly 6% of group sales, mainly within the Process Automation segment.

The company reaffirmed its full-year earnings per share guidance range of 136p to 142p and said it remains on track to deliver mid-single-digit organic constant currency sales growth for the year. Current guidance assumes planned shipments to Middle Eastern customers will proceed as expected before year-end.

More about IMI plc

IMI plc is a UK-based engineering company specialising in precision fluid and motion control technologies for industrial applications. The group operates across sectors including process automation, industrial automation, climate control, transport and life sciences, supplying mission-critical components and systems to customers worldwide.

International Workplace Group (LSE:IWG) reported continued revenue growth and network expansion during the first quarter of 2026, while warning that economic uncertainty and inflationary pressures are prompting additional cost-control measures.

The flexible workspace provider generated system-wide revenue of $1.17 billion during the quarter, representing year-on-year growth of 9%. Group fee revenue increased 4% to $958 million compared with the same period last year.

Revenue from company-owned operations reached $906 million, up 2% year-on-year, while revenue per available room rose 6% to $389 from $340 in fiscal 2025.

The managed and franchise division continued to deliver strong momentum, with fee revenue climbing to $39 million and total system-wide revenue rising 41% year-on-year to $260 million. Recurring fee revenue within the segment increased 80% to $16 million, reflecting continued growth in asset-light operations.

International Workplace Group added 213 net new locations during the quarter, taking total room capacity to 336,000, an increase of 48% compared with the prior year. The company’s pipeline also expanded further to 231,000 rooms, up from 227,000 at the end of fiscal 2025.

New centre signings accelerated significantly during the quarter, reaching 377 compared with 286 in the previous quarter, indicating continued demand for flexible workspace solutions despite a more uncertain economic backdrop.

Net debt increased by $143 million during the period to $858 million. The company attributed the rise primarily to seasonal cash outflows, including approximately $53 million in share buybacks, bonus payments, deferred liabilities and the implementation of a new automated invoicing system that accelerated certain supplier payments.

Despite the higher debt position, International Workplace Group maintained its FY2026 adjusted EBITDA guidance range of $585 million to $625 million. Management also said the company will introduce proactive cost reduction measures from the second quarter onward in response to inflationary pressures and growing macroeconomic uncertainty.

More about International Workplace Group

International Workplace Group is a global provider of flexible workspace solutions operating brands including Regus, Spaces and HQ. The company offers office space, coworking environments and hybrid working solutions across thousands of locations worldwide through a combination of company-owned, managed and franchised centres. Its strategy focuses on expanding asset-light operations while benefiting from growing demand for flexible and hybrid work models.

Small-cap energy companies often face a difficult balancing act: generating reliable cash flow today while building a meaningful long-term production story for tomorrow. According to Buccaneer Energy (LSE:BUCE) CEO Paul Welch, the company believes it is now entering a phase where both objectives are beginning to align.

In a recent interview on the Capital Compass with host Ricki Lee, Welch outlined Buccaneer Energy’s strategy to steadily scale production, strengthen profitability, and unlock what management sees as a substantial valuation gap.

From Turnaround to Growth Story

Welch explained that when the current leadership team became involved nearly two years ago, the company was facing significant operational and financial challenges. Since then, Buccaneer Energy has focused on rebuilding the business around disciplined production growth and consistent cash generation.

Today, the company is producing just over 150 barrels of oil per day, with management targeting an initial milestone of 250 barrels per day before accelerating further growth. Longer term, Buccaneer has outlined ambitions to reach approximately 5,000 barrels per day over the coming years.

Rather than pursuing rapid expansion at any cost, Welch emphasized that Buccaneer’s strategy is centered on incremental, sustainable growth supported by a strong operational foundation.

“We first get to 250 and then we scale,” Welch explained, highlighting consistency and reliability as the key priorities for management.

Strong Cash Flow Driving Confidence – Closing the Value Gap

One of the most compelling aspects of Buccaneer’s story is its growing cash flow profile. Despite its micro-cap valuation, the company is already generating meaningful free cash flow from operations.

Welch noted that Buccaneer recently generated more than $250,000 in free cash flow in a single month, despite maintaining a market capitalization below £2 million. This cash generation is being driven by low operating costs and strong oil margins from the company’s onshore assets.

In some areas of the field, operating costs are reportedly below $5 per barrel. With oil prices remaining favourable, Buccaneer believes these economics create a highly attractive margin profile and provide flexibility for reinvestment into future growth projects.

Importantly, management stressed that the company’s economics remain resilient even if oil prices moderate, thanks to the efficiency of its operations.

Markets ultimately respect cash flow, and this will naturally close the currently valuation gap.

Operational Improvements at Pine Mills

A major area of focus for investors has been Buccaneer’s enhanced oil recovery pilot at Pine Mills. Early results from the project have been encouraging, according to management.

Welch said the pilot initially doubled production in the target area while also significantly reducing fluid handling volumes. Lower fluid movement translates into reduced power and operating costs, improving overall field economics.

While production has stabilized after the initial uplift, the company believes the project is demonstrating the potential to improve recovery efficiency across the broader field.

Management sees the next phase, particularly the implementation of an expanded water flood program, as a potentially transformative step that could meaningfully increase production and drive the next stage of corporate growth.

Welch remarked, that the OOR project improves efficiency of the existing projects, but the Fouke waterflood will “move the needle” when it comes to production growth and value creation.

Strategic Acquisitions Adding Value

Buccaneer is also pursuing selective acquisitions designed to strengthen its operational position while delivering immediate financial returns.

Welch highlighted the Carile 1 acquisition as an example of this strategy in action. Acquired for approximately $425,000 before the recent rise in oil prices, the asset generated roughly $70,000 in free cash flow last month alone.

According to management, the acquisition is expected to pay for itself in less than six months under current market conditions.

Beyond the financial return, the deal also provided Buccaneer with a larger ownership position in a strategically important area tied to future water flood development plans. This increased ownership gives the company greater operational influence over what management describes as some of the field’s most profitable barrels.

Welch described these kinds of “strategic bolt-on acquisitions” as a core part of Buccaneer’s growth philosophy moving forward.

Building for Long-Term Value

As cash flow continues to increase, Buccaneer Energy appears focused on balancing disciplined reinvestment with balance sheet strength.

Welch pointed to management’s prior experience growing micro-cap companies into significantly larger businesses and said consistent cash generation provides the company with valuable flexibility.

“The cash gives us choices and from those choice we can create value,” he said, emphasizing that strong cash flow, supportive banking relationships, and attractive development opportunities together create a platform for profitable long-term expansion.

With production growth initiatives underway, operational efficiencies improving, and strategic acquisitions delivering results, Buccaneer Energy is positioning itself as a small-cap energy company aiming to translate steady cash flow into a larger production and valuation story over the years ahead.

For more information visit https://buccaneerenergy.co.uk/

Shell (LSE:SHEL) is reportedly preparing to sell its network of petrol stations located along French motorways, according to documents shared with employees and suppliers and cited by French newspaper Les Echos.

The energy group currently operates around 60 motorway service station sites across France. While the locations are managed by third-party operators, Shell supplies the fuel and related services under commercial agreements that generate fee income for the company.

According to the report, the business delivered operating profit of approximately €108.5 million in 2025.

Shell has reportedly informed employee representatives that it expects to identify a buyer during the third quarter of this year, with completion of the transaction targeted for early 2027.

The potential disposal would form part of Shell’s broader portfolio optimisation strategy as the company continues to focus on operational efficiency and capital allocation across its global energy and downstream businesses.

More about Shell

Shell is one of the world’s largest integrated energy companies, operating across oil, gas, chemicals, renewable energy and retail fuel markets. The group maintains extensive downstream operations including fuel supply, refining, trading and retail service stations, while also investing in lower-carbon energy solutions and energy transition initiatives globally.