Commodity Capsule: Oil prices rose on Friday amid heightened tensions in the Middle East.

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Uncertainty over the Israel-Gaza war has raised the risk of supply disruptions from the oil-producing region.

Although expectations of fewer US interest rate cuts this year kept a lid on rising crude prices.

Brent crude futures climbed past $90 a barrel. US WTI crude futures rose over $85.50. For the week, Brent crude is down nearly 1 per cent so far.

Crude oil benchmarks dipped into red, in the previous session, due to worries about stubborn US inflation that dampened hopes for interest rate cuts as early as June.

Israel has not said it was responsible but Iran's supreme leader, Ayatollah Ali Khamenei, said on Wednesday Israel "must be punished and it shall be" for the attack.

US expects an attack by Iran against Israel but one that would not be big enough to draw Washington into war, according to US officials.

Israel is keeping up its war in Gaza but is preparing for scenarios in other areas, Prime Minister Benjamin Netanyahu said on Thursday.

ING maintains their forecast for Brent to average $87 a barrel over the second quarter of this year.

Gold prices scaled to a record high on Friday as geopolitical tensions continued to boost demand for the safe-haven metal, while strong economic data failed to dampen bullion's allure.

Bullion hit a record high past $2,400 an ounce on Friday. US gold futures gained over $100 in 1 week and $250 over the span of four weeks.

The ranks of Federal Reserve officials saying there is no rush to cut interest rates continue to grow, with still-too-hot-for-comfort U.S. inflation a rising concern.

Expectations for how much policy easing the Federal Reserve can deliver are falling rapidly as one strong economic report after another suggests inflation could come creeping back if US central bank lowers borrowing costs prematurely.

European Central Bank held interest rates at a record high but signalled it could start cutting as soon as June.

Shanghai Gold Exchange will raise margin requirements for some gold futures contracts to nine per cent from eight per cent, the bourse said on Friday. The change will apply from settlement on April 15.

London copper prices were back on an uptrend on Friday holding around two years high, supported by firm market fundamentals.

Protest at Peru's Las Bambas copper mine blocking trucks is aiding price rise.

Copper on the London Metal Exchange moved higher past $9,400 per metric ton, reversing losses in the previous session.

The contract declined in the last two trading sessions after US inflation data rose more than expected in March, pushing out the expected timing of a first-rate cut to September from June.

More global copper smelters were not operating in March than in the first two months, data from satellite surveillance of metal processing plants showed.

Surveillance reveals that an average of 17.7 per cent of global copper smelter capacity monitored was inactive in March compared with 11.5% during January and February combined.

Average inactive capacity in China rose to nine per cent in March from 8.3 per cent in the first two months, it added in a statement on Thursday.

China's top copper smelters proposed in late March to cut production by five per cent to 10 per cent after China battled a short supply of raw material and losses at some operations.

Robusta coffee rose to a 16-year peak past $3,850/T, while arabica coffee hit an 18-month high past 2.2 cents a pound.

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