Copper Prices Move Sideways as US–Iran Tensions Continue to Dominate

Copper prices hovered around $5.6 per pound on Tuesday, extending a sideways trend into the fourth consecutive session as investors focused on the deadline set by US President Donald Trump for Iran to reach an agreement or face potential attacks on civilian infrastructure.

Trump warned that power plants and bridges in Iran could be targeted if conditions were not met by 8:00 PM Tuesday (Eastern Time), including the reopening of the Strait of Hormuz.

These developments overshadowed signals suggesting that the United States and Iran may be moving closer to a ceasefire agreement through intermediaries.

Meanwhile, Goldman Sachs warned of short-term downside risks for copper if the Strait of Hormuz remains closed, as rising energy costs could put pressure on global economic growth.

Since the beginning of the year, copper prices have remained relatively low amid ample supply and rising inventories. Stocks on the London Metal Exchange (LME) are currently near a six-year high, while inventories on the Shanghai Futures Exchange (SHFE) are also approaching record levels.

Source: Trading Economics