Copper Eases on Middle East Uncertainty

Copper futures slipped below $6.4 per pound on Tuesday, trimming gains from the prior session as elevated uncertainty in the Middle East kept inflation and interest rate concerns in focus. The US military reportedly targeted missile launch sites and vessels suspected of attempting to deploy mines in southern Iran, though President Donald Trump said talks with Tehran were progressing well. Despite the pullback, copper prices remain underpinned by the strong rally in AI-related technology stocks since the start of May, supporting expectations for rising demand tied to electrification and data center wiring requirements. Additional support also comes from the global shift toward clean energy, which is expected to sustain longer-term copper consumption. Meanwhile, supply-side concerns linked to the Middle East conflict, particularly potential shortages of sulfur used in copper smelting, continue to lend underlying price support.

Copper decreased to 5.50 USD/Lbs, the lowest since March 2026. Over the past 4 weeks, Copper gained 6.85%, and in the last 12 months, it increased 33.9%.

Copper futures climbed to around $6.4 per pound on Monday, reaching their highest level in more than a week as investor sentiment strengthened on signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz, easing concerns over inflation and further interest rate hikes. Still, President Trump said Washington would maintain its blockade of the Strait of Hormuz until a formal agreement is finalized, adding that he would not “rush” into a deal. Copper prices also continued to draw support from the strong rally in AI-related technology stocks since the beginning of May, reinforcing expectations for higher demand tied to electrification and wiring needs in data centers. Additional support came from the global transition toward clean energy, which is expected to sustain long-term copper demand. At the same time, supply concerns linked to the Middle East conflict, particularly shortages of sulfur used in copper smelting, continued to underpin prices.