Copper prices surged in global markets after former US President Donald Trump announced a postponement of planned military strikes on Iranian energy infrastructure, easing immediate geopolitical tensions and triggering a relief rally across commodities.
Benchmark copper on the London Metal Exchange rose about 0.5% to nearly $11,985 per metric ton, recovering from earlier losses when prices had slipped to a three-month low amid escalating conflict fears.
Market sentiment improved after Trump signaled a temporary halt to attacks following what he described as “productive conversations” with Iran, a move that also led to a broader rally in global financial markets and a drop in oil prices.
Analysts said industrial metals like copper gained support from a weaker US dollar, which makes dollar-denominated commodities cheaper for international buyers. Additionally, signs of improving demand from China—the world’s largest copper consumer—helped strengthen prices, with falling inventories and rising import premiums indicating renewed buying interest.
Copper, widely viewed as a barometer of global economic health, had been under pressure due to rising energy costs and fears of supply disruptions linked to the Iran conflict. The postponement of strikes has temporarily reduced risk premiums, though experts caution that volatility may persist if geopolitical tensions escalate again.
The broader backdrop remains uncertain, as the ongoing conflict in the Middle East continues to disrupt energy markets and fuel inflation concerns, factors that could influence industrial demand and commodity pricing in the coming weeks.