{"id":62645,"date":"2026-06-02T19:38:19","date_gmt":"2026-06-02T23:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/"},"modified":"2026-06-02T19:38:19","modified_gmt":"2026-06-02T23:38:19","slug":"middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/","title":{"rendered":"Middle East Tensions Escalate as Iran Strikes US Bases; Commodities Surge Amid Supply Fears"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#Iran_Strikes_US_Bases_in_Kuwait_and_Bahrain\" >Iran Strikes US Bases in Kuwait and Bahrain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#Markets_React_to_Gulf_Instability\" >Markets React to Gulf Instability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#Commodities_Hit_Record_Highs_on_Supply_Risks\" >Commodities Hit Record Highs on Supply Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#USTR_and_Defense_Developments\" >USTR and Defense Developments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-tensions-escalate-as-iran-strikes-us-bases-commodities-surge-amid-supply-fears\/62645\/#Regional_Economic_Updates\" >Regional Economic Updates<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Iran\u2019s IRGC launched &quot;precise and concentrated&quot; missile strikes against US military bases in Kuwait and Bahrain<\/strong>, causing <strong>US Crude oil to rise 1.1%<\/strong> as regional stability fears intensify.<\/li>\n<li><strong>Copper prices topped $14,000 a ton<\/strong> and <strong>Aluminum hit a four-year high of $3,752.50<\/strong>, driven by Middle East supply risks and surging demand from AI and energy transition sectors.<\/li>\n<li><strong>The USTR has officially launched a public comment process<\/strong> regarding the <strong>U.S.-China Board of Trade<\/strong>, seeking input on potential tariff adjustments for specific sectors through July 10.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> and Nasdaq futures both slipped 0.1%<\/strong> in late-night trading as investors reacted to the military escalations in the Persian Gulf.<\/li>\n<li><strong>Australia\u2019s S&amp;P Global May PMI Composite rose slightly to 48.7<\/strong> but remains in contraction territory, while <strong>New Zealand building permits surged 10.9%<\/strong> in April.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Iran_Strikes_US_Bases_in_Kuwait_and_Bahrain\"><\/span>Iran Strikes US Bases in Kuwait and Bahrain<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> confirmed on Tuesday that it carried out retaliatory ballistic missile strikes targeting <strong>US military bases in Kuwait and Bahrain<\/strong>. The IRGC stated the attacks were a direct response to a purported US strike on <strong>Iran\u2019s Qeshm Island<\/strong>, warning that any further &quot;reckless adventurism&quot; would be met with a &quot;seismic, crushing, and decisive response.&quot;<\/p>\n<p>Reports from the <strong>Tasnim News Agency<\/strong> indicated multiple explosions at US facilities, while air defense activity was observed over <strong>Manama, Bahrain<\/strong>. <em>The escalation marks a significant break from previous rules of engagement<\/em>, with Iranian officials declaring that the &quot;time of hit and run is over.&quot;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Markets_React_to_Gulf_Instability\"><\/span>Markets React to Gulf Instability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Financial markets showed immediate volatility following the reports of military action. <strong>US Crude oil prices climbed 1.1%<\/strong>, reflecting concerns over potential disruptions to energy transit through the <strong>Strait of Hormuz<\/strong>.<\/p>\n<p>In equity markets, <strong>S&amp;P 500 futures dipped 0.1%<\/strong> and <strong>Nasdaq futures fell 0.1%<\/strong>. <em>Investors are pivoting toward defensive postures<\/em> as the threat of a broader regional conflict looms over global supply chains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodities_Hit_Record_Highs_on_Supply_Risks\"><\/span>Commodities Hit Record Highs on Supply Risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Base metals reached historic milestones as supply concerns merged with structural demand. <strong>Copper closed at $14,040.50 a ton<\/strong>, while <strong>Aluminum rose over 25% year-to-date to reach $3,752.50 a ton<\/strong>.<\/p>\n<p>Analysts cite a &quot;perfect storm&quot; of <strong>Middle East supply risks, potential U.S. tariff actions, and AI-driven demand<\/strong> as the primary catalysts for the rally. <em>The energy transition continues to provide a high floor for prices<\/em>, as copper remains essential for global electrification efforts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"USTR_and_Defense_Developments\"><\/span>USTR and Defense Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Office of the United States Trade Representative (USTR)<\/strong> has opened a public comment window for the <strong>U.S.-China Board of Trade<\/strong>. The agency is seeking feedback on which products and sectors should be eligible for <strong>U.S. tariff adjustments<\/strong>, with a final submission deadline of <strong>July 10<\/strong>.<\/p>\n<p>Simultaneously, the <strong>State Department<\/strong> approved a possible <strong>$100 million military sale<\/strong> of C-130 sustainment services to <strong>Vietnam<\/strong>. This move highlights the ongoing U.S. effort to strengthen regional partnerships in Southeast Asia amid shifting geopolitical alliances.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regional_Economic_Updates\"><\/span>Regional Economic Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Australia, the <strong>S&amp;P Global May PMI Composite<\/strong> printed at <strong>48.7<\/strong>, a slight improvement from the previous 47.8 but still indicating a contraction in private sector activity. Meanwhile, the <strong>ACCC<\/strong> has granted conditional approval for <strong>Ampol (<a href=\"\/stock\/ALD\">ALD<\/a>)<\/strong> to proceed with its acquisition of <strong>EG Australia<\/strong>.<\/p>\n<p>New Zealand reported a massive <strong>10.9% jump in building permits<\/strong> for April, rebounding from a previous 1.3% decline. However, the nation&#39;s <strong>Terms of Trade Index for Q1 fell 2.0%<\/strong>, missing analyst estimates of a 1.0% decline and signaling pressure on the country&#39;s export-import balance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iran\u2019s IRGC launched &quot;precise and concentrated&quot; missile strikes against US military bases in Kuwait and Bahrain, causing US 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