Copper Firms Up on Ceasefire Hopes

Copper rose above $5.5 per pound on Friday and was set for its first weekly gain since the Middle East conflict began, supported by hopes for a diplomatic resolution between the US and Iran. President Donald Trump extended the deadline to strike Iranian energy infrastructure by 10 days to allow for negotiations, adding that Iran had permitted 10 oil tankers to pass through the Strait of Hormuz this week as a gesture of goodwill. However, reports indicated the Pentagon is considering sending up to 10,000 additional ground troops to the region, giving the White House more options at the negotiating table. Copper and other metals have come under pressure this month as disruptions from the conflict and surging energy prices heightened concerns over inflation and slowing global industrial activity.

Copper decreased 2.01% to 5.418 USD/Lbs

Copper dropped more than 1% to around $5.45 per pound on Thursday, reversing gains from the previous session as conflicting statements from the US and Iran over potential peace talks weighed on metals markets. Washington has maintained that negotiations are ongoing, with the Trump administration reportedly sending a 15-point proposal to Iran via Pakistan aimed at resolving the conflict and reopening the Strait of Hormuz. However, Iran said it has no intention of holding talks with the US and would reject a US ceasefire offer, instead setting its own conditions, including sovereign control over the strategic waterway. Disruptions from the Middle East conflict and surging energy prices have raised concerns about inflation and slowing industrial activity globally, clouding the demand outlook for metals.