FX.co ★ Fire at Ukraine nuclear power plant pushes commodity prices higher

Reports of a fire at Ukraine's largest nuclear power plant have sent commodity prices even higher, despite claims by Ukrainian authorities that the fire did not affect major equipment.

Reuters, citing Ukrainian authorities, reported last week that a fire broke out in the training building of the Zaporizhzhya nuclear power plant, which is also Europe's largest plant. The video, verified by Reuters, showed the burning building.

Later that day, the BBC reported, citing authorities in the nearby town of Energodar, that the fire had been extinguished. The report also said that hostilities in the area had ceased.

Ukrainian authorities blamed Russian shelling for the fire, as well as heavy fighting in the area. Last week, Russian forces took control of the area, including the factory.

According to US Secretary of Energy Jennifer Granholm, there are no indications of elevated radiation levels around the Zaporizhzhia NPP. Following this news, the rally in commodity prices intensified due to renewed fears of supply disruptions. According to Bloomberg, the price of wheat reached its highest level since 2008 and aluminum reached a record high of $3,850 per tonne. As of today, the price is $4,038.

Brent crude was trading at more than $123 per barrel. However, last week, it lost some of its gains due to reports that there is a possibility of an agreement between the United States and Iran that could lead to the lifting of US sanctions on Iranian oil. Oil was priced at $128, having bounced back slightly from the highs.

West Texas Intermediate crude was trading at more than $118 per barrel. As of today, the price was as high as $128.