Copper Futures Reach Weekly High as Demand Outlook Strengthens

Copper futures rose to approximately $6.4 per pound on Monday, reaching their highest level in over a week as investors grew increasingly optimistic about the prospect of a US-Iran agreement that could lead to the reopening of the Strait of Hormuz. The potential breakthrough helped reduce market concerns surrounding inflationary pressures and additional interest rate increases.

Despite the positive sentiment, President Donald Trump emphasized that the United States would maintain restrictions on the Strait until a formal deal is reached, while also indicating that negotiations would proceed cautiously rather than on an accelerated timeline.

Copper prices also continued to benefit from strong momentum in AI-focused technology stocks. Rising investments in artificial intelligence, power grid expansion, and data center construction have strengthened expectations for increased copper consumption across key industries.

In addition, the ongoing global shift toward renewable energy and electrification remains a significant driver of long-term demand for the red metal.

On the supply side, geopolitical tensions in the Middle East continued to provide support for copper markets. Concerns over potential sulfur shortages—an essential input in copper smelting operations—have raised fears of tighter supply conditions, helping sustain the recent price rally.

Source: Trading Economics