Oil prices climbed back above $100 a barrel as investors weighed the possibility of renewed intense conflict between the United States and Iran, which could tighten supplies of crude and refined products further.

Copper prices fell, with rising oil prices and a stronger dollar weighing on the base metals market. Gold advanced as comments from Federal Reserve officials eased market concerns about an October rate hike.

Crude Oil: Prices Rise as Traders Weigh Potential Middle East Escalation

Oil prices climbed back above $100 a barrel as investors weighed the possibility of renewed intense conflict between the United States and Iran, which could tighten supplies of crude and refined products further. Brent for December delivery rose 4.4% to settle above $102 a barrel. Crude futures hit intraday highs on Thursday after reports that the United States had dispatched a third carrier strike group to the Middle East. Wall Street analysts and traders said earlier this week that Middle East crude exports were close to pre-war levels. But Iran appeared to have loaded no crude onto tankers in September, the latest sign that the U.S. naval blockade is effectively cutting Iran off from energy markets. Investors worry that an increasingly cornered Iran could respond by escalating the conflict. "The increase in oil flows remains highly vulnerable to escalation shocks. Given that inventories are at relatively low levels after about six months of sustained declines, I think the market remains structurally tight," said Hamad Hussain, climate and commodities economist at Capital Economics. Traders are also grappling with uncertainty in refined product markets. Middle East turmoil and Ukrainian strikes on Russian refineries have disrupted the diesel market. Citing people familiar with the matter, the United States has told Germany and France to release emergency diesel reserves to help ease global fuel prices or potentially face a U.S. diesel export ban. Brent for December delivery rose 4.4% to settle at $102.31 a barrel; West Texas Intermediate for November delivery rose 2.7% to settle at $92.87 a barrel.

Base Metals: Copper Retreats

Copper prices fell as rising oil prices and a stronger dollar weighed on the base metals market, while traders assessed shifting supply prospects. Most base metals declined this week. Traders are evaluating the supply outlook. In Chile, a mine owned by Antofagasta Plc could face production disruption from a strike, while the Panamanian government proposed a path to restart production at a large copper mine in the country. At the close, LME copper fell 1.2% to $14,243.50 a ton; LME aluminum fell 1.5% to $3,123 a ton; LME zinc fell 2.8% to $3,724 a ton; LME nickel fell 1.9% to $15,634 a ton; LME tin rose 0.8% to $54,332 a ton; LME lead fell 0.9% to $1,857 a ton.

Precious Metals: Gold Climbs

Gold prices rose, supported by a pullback in U.S. Treasury yields. Concerns about France's fiscal outlook stoked safe-haven demand, sending Treasury yields lower across the curve. Surging yields had driven gold down 6% in September. Federal Reserve Vice Chair Jefferson said the central bank may need more time to assess whether further rate hikes are necessary, easing market concerns about another hike in October. "Geopolitical uncertainty, especially stalled U.S.-Iran ceasefire talks, continues to provide safe-haven support for gold, while rising oil prices remain an inflation risk," said Manav Modi, commodities analyst at Motilal Oswal Financial Services. As of 5 p.m. Eastern Time, spot gold rose 0.5% to $4,177.66 an ounce; spot silver rose 0.9% to $60.9902 an ounce.