RBNZ raised its policy rate by 25bps to 2.75% from 2.50%, in line with market expectations; it is the second consecutive meeting with a rate increase.

Diesel futures rose to their highest in over four months as refinery attacks linked to fighting in the Middle East and Ukraine tightened supply, raising inflation concerns and exerting broader pressure on commodity prices. ICE diesel futures gained as much as 4.2%, reaching their strongest level since April 9. Diesel-to-Brent crack spreads remain elevated after hitting a record last month. European diesel continued to rise, widening its premium to Asia. Diesel has climbed more than 50% since the June 18 low, outperforming crude over the same period.

Copper fell for a second session, joining declines across base metals, after oil's third straight gain heightened concerns about the global growth outlook. LME three-month copper, which closed at a record high last week, slipped below $14,200/tonne. Escalation in US–Iran violence and renewed uncertainty over reopening the Strait of Hormuz supported crude. Industrial metals were strong in August on tight supply; copper is up nearly 4% for the month. A hawkish speech by Fed Chair Kevin Wash on Friday, combined with the geopolitical flare-up, pushed markets to price a higher probability of Fed rate hikes to rein in inflation — a dynamic that could slow growth and curb industrial commodity demand.