Copper Steadies as US-Iran in Focus

Copper steadied around $5.6 per pound on Tuesday, holding within a sideways range for a fourth straight session as investors focused on President Donald Trump’s deadline for Iran to strike a deal or face attacks on civilian infrastructure. Trump warned he could target Iranian power plants and bridges if his conditions are not met by Tuesday 8 p.m. Eastern Time, including reopening the Strait of Hormuz. This overshadowed signs that the US and Iran may be moving closer to a ceasefire agreement through mediators. Meanwhile, Goldman Sachs flagged near-term downside risks for copper if the Strait of Hormuz remains closed, as elevated energy costs could weigh on global economic growth. The metal also remains down for the year amid ample supply and rising inventories, with London Metal Exchange stockpiles near six-year highs and Shanghai Futures Exchange holdings close to record levels.

Copper futures climbed toward $5.6 per pound on Monday, rebounding from the previous session’s losses as market sentiment improved on hopes for a ceasefire in the Middle East. The US, Iran, and a group of regional mediators are reportedly negotiating terms for a potential 45-day truce that could pave the way for a more lasting resolution to the conflict. This development helped ease concerns after President Donald Trump recently set a new deadline for Iran and escalated threats against its power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Copper had been under pressure as rising energy costs and risks of supply disruptions weighed on the outlook for industrial demand and global growth. The metal also remains lower for the year amid ample supply and increasing inventories, with London Metal Exchange stockpiles near six-year highs and Shanghai Futures Exchange holdings close to record levels.

Copper futures slipped to below $5.6 per pound, retreating from a two-week high amid renewed concerns over economic growth after US President Donald Trump gave no clear timeline for ending the Iran conflict. Trump said Washington’s core objectives in the conflict were nearing completion, but gave no clear timeline for ending the war, while warning that the US could still strike Iran “extremely hard” over the next two to three weeks. He added that the US did not need the Strait of Hormuz, suggesting it would reopen naturally once tensions ease, though concerns over the waterway kept energy markets volatile. Copper, which has recently moved inversely to oil, came under pressure as higher energy costs and supply disruption risks clouded the demand outlook. The metal is also down about 10% year-to-date, weighed by abundant supply and rising inventories, with LME stockpiles near six-year highs and SHFE holdings close to record levels.