Brent Crude Rallies Above $100 Amid Geopolitical Tensions
China-linked commodity markets sent mixed signals over the past week, with externally driven energy and metals inflation strengthening despite soft domestic demand. Brent crude was a standout mover, rising to $101.21 a barrel on September 9, up 5.8% from $95.63 on September 2. The rally came amid renewed US-Iran fighting, attacks on tankers, and Houthi strikes on Saudi energy infrastructure, which pushed the benchmark above $100.
The contrast is significant for China, where higher imported input costs are feeding into producer prices without yet reflecting a broad recovery in consumption. Chinese customs data showed August imports down 23.4% year-on-year, while Sinopec's research arm expects China's oil demand to fall 8.9% in 2026.
Copper also strengthened sharply, with the SHFE continuous copper contract ending September 9 around 111,080 RMB (approximately $16,560) per tonne, compared with roughly 108,650 RMB ($16,200) on September 2. International prices rose even faster, up 3.5% to $14,628 per tonne on the LME.