Copper Pulls Back Amid Ongoing Middle East Tensions

Copper futures slipped below $6 per pound on Friday after approaching a two-month high earlier in the week, as uncertainty surrounding US-Iran peace negotiations and persistent disruptions in the Strait of Hormuz continued to drive up energy costs and heighten inflation concerns.

Iran remains in control of the crucial shipping route and has reportedly engaged commercial vessels in recent days, while the United States’ blockade of Iranian ports is still in effect, maintaining geopolitical pressure on the country.

Industrial metals, including copper, have been weighed down by worries that rising inflation could lead to tighter monetary policies, along with concerns about slowing economic growth that may reduce global demand for raw materials.
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However, losses have been somewhat limited by increased restocking activity in China ahead of the Labor Day holiday (May 1–5). In addition, official figures indicated that Chinese smelters recorded a new monthly high, producing 1.33 million tons of refined copper in March.