Commodity Prices Soar to Highest Level Since 2008 Amid War, AI Boom

The global commodity price index, FTSE/CRB Commodity Index, has reached its highest level since the 2008 global financial crisis. This 'everything rally' is driven by a mix of factors, including the Middle East war, an AI-driven copper spike, and gold hoarding fueled by distrust in the dollar.

The index rose to 423.11 on September 9, up 42% from the start of the year, with oil, metals, and grains prices at their highest levels in 18 years. Crude oil alone accounts for 23% of the index, but copper, aluminum, gold, silver, and natural gas have all risen together.

This rally is structurally different from past episodes, which were usually driven by one or two central factors. The current rally is driven by multiple forces, including Middle East tensions, US tariff policy, and rising global investment in AI.