Copper Shrugs Off Middle East Uncertainty to Aim for Record High
Copper headed for its highest-ever close and other metals advanced as traders shrugged off the apparent deadlock between the US and Iran to join a broader rally for risk assets.
(Bloomberg) -- Copper headed for its highest-ever close and other metals advanced as traders shrugged off the apparent deadlock between the US and Iran to join a broader rally for risk assets.
Five of the six main contracts on the London Metal Exchange posted gains, after the bourse’s all-in gauge of prices ended Friday on a record high. Metals from copper to zinc have proved resilient in the face of the Middle East war, partly thanks to signs of demand outstripping supply.
The upward momentum from last week carried into Monday despite US President Donald Trump rejecting Iran’s latest peace proposal as “totally unacceptable” at the weekend. Metals rose along with equities in Asia, suggesting investors are not greatly concerned about a serious escalation.
Quick answers to key questions
Copper is advancing towards a record high as traders are overlooking the US-Iran conflict, focusing instead on signs of demand outpacing supply. Factors like tight supply and declining inventories in China are contributing to copper's distinct price trend.
Crude oil prices have surged due to concerns over tight global energy supplies following the failure of US-Iran peace talks and the continued closure of the Strait of Hormuz. This disruption has caused the largest supply shock on record.
The near-term outlook for crude oil prices remains cautious and highly headline-driven, with volatility likely to persist due to ongoing developments around the Strait of Hormuz. Resistance is noted around $9,150–$9,250, with support near $8,800.
The conflict has led to a near shutdown of the Strait of Hormuz, disrupting the supply of sulfur from Middle East oil refineries and gas plants. This has caused sulfuric acid prices to soar and raised concerns about its availability for various industries.
Industrial metals are receiving a boost from China's robust exports, particularly clean-tech goods which are copper-intensive. Demand for metals for the energy transition and defense also contributes to copper's resilience.
“The market has moved on from the impact of the US-Iran conflict, and copper has its own distinct price trend now,” said Jia Zheng, trading manager at Suzhou Chuangyuan Harmony-Win Capital Management Co. This is primarily due to factors such as tight supply and declining inventories in China, she said.
Most base metals are now solidly higher for the year so far, despite sharp dips in the opening weeks of the Iran war as investors fretted about serious fallout for the global economy. Copper is up about 10% since end-2025, and there were plenty of bullish takes at a major gathering of metals-market participants in Hong Kong last week.
Industrial metals are also getting a boost from China’s robust exports — the April headline figure rose 14% from a year earlier — including booming shipments of clean-tech goods, which tend to be copper-intensive.
Demand for metals for the energy transition and defense, coupled with supply headwinds, will boost copper’s resilience in a worst-case scenario that entails a prolonged closure of the Strait of Hormuz, according to Citigroup Inc. analysts.
Copper was up 0.2% to $13,600 a ton by 12:53 p.m. Shanghai time, while aluminum gained 0.6% and nickel rose 1.6%.
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