The US reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers.
World shares were deep in the red as concerns grew the China-US trade conflict was fast turning into a technology cold war between the world's two largest economies.
US West Texas Intermediate (WTI) crude futures were down by 43 cents at $60.99 per barrel, after falling 2.5% the previous day.
On the Multi Commodity Exchange, aluminium for delivery in May contracts eased by 29 paise, or 0.38 per cent, to Rs 143.30 per kg in a business turnover of 1,230 lots.
On the Multi Commodity Exchange, silver for delivery in July contracts dipped by Rs 29, or 0.08 per cent, to Rs 36,280 per kg, clocking a business volume of 28,602 lots.
On Multi Commodity Exchange, gold for delivery in June contracts was down Rs 66, or 0.21 per cent, at Rs 31,356 per 10 grams in a business turnover of 6,525 lots.
Iron ore prices have crossed $100 per tonne and the bullish view is they could go higher. But don’t close your eyes to the risks.
Brent crude futures were down 41 cents at $71.77 a barrel by 1339 GMT. US West Texas Intermediate (WTI) crude futures for July delivery were down 67 cents at $62.46.
Norsk Hydro's Alunorte alumina refinery is finally allowed to function at full capacity. What this could mean for Indian aluminium companies
Here's a roundup of key happenings in the commodities market.
The dollar index gained, holding near a two-week high against a basket of currencies, making gold more expensive for holders of other currencies.
Gold futures in India, the world's second biggest bullion consumer after China, jumped to 32,538 rupees per 10 grams earlier this week, a peak since March 4.
US sanctions on Iran have cut the OPEC member's crude exports further in May, adding to supply curbs resulting from an OPEC-led pact. Meanwhile, rising tension in the Middle East this week has raised concern about additional supply disruption.
Demand supply dynamics is pointing to a crunch situation ahead. Any trade deal between the US and China may stoke prices further
Analysts said raising of bets by participants kept crude prices higher at futures trade here.
Analysts attributed the fall in gold futures to profit-booking by traders in the domestic markets.
Spot gold slipped 0.7% to $1,288.03 per ounce as of 11:07 a.m. EDT (1507 GMT). Prices were on track for their biggest percentage decline since April 16.
The buyers want Russian producers to give guarantees in the form of bank deposits that they will contribute to the clean-up, or delay payments due this week until the crisis is resolved, said a source at European refiner, who declined to be named.
The attack 'proves that these militias are merely a tool that Iran's regime uses to implement its expansionist agenda,' tweeted Prince Khalid bin Salman, a son of King Salman.
Analysts said off-loading of positions by participants to book profits and a weak trend in the domestic markets, mainly influenced gold prices at futures trade here.
The concerns over US-China trade war will bring down the crude oil following weakness in global growth
The Saudi tankers Al-Marzoqah and Amjad suffered 'significant damage' in as yet unexplained sabotage attacks in the Sea of Oman off the United Arab Emirates on May 12, Energy Minister Khalid al-Falih said, but there were no casualties or any oil spill.
On the MCX, gold for delivery in June contracts was trading lower by Rs 42, or 0.13 percent, to Rs 32,199 per 10 gram in a business turnover of 9,005 lots.
Vienna-based OPEC trimmed its estimate of oil supply growth from outside the group in 2019 and said the rapid rise in production of US tight oil, another term for shale, was moderating.