Copper Gains on 2-Week Ceasefire

Copper futures jumped nearly 3% toward $5.7 per pound on Wednesday, hitting a three-week high after Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week ceasefire with the US and Israel, easing demand concerns. President Donald Trump said the US had received a 10-point proposal from Iran that he described as a “workable basis for negotiations,” with the two-week window allowing the potential agreement to be finalized and implemented. The temporary reopening of the strategic waterway is expected to ease investor concerns about inflation and slowing industrial activity globally, which have clouded the demand outlook for metals. Earlier this week, Goldman Sachs highlighted near-term downside risks for copper if the Strait of Hormuz remained closed, as elevated energy costs could weigh on global economic growth.

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.