04.06.2026 21:40
The weakening of peace hopes in the Middle East and the escalation of conflicts are causing strong headwinds in commodity markets. Copper, which had gained morale by climbing to a three-week high in the early days of the week, gave back its gains following negative news from the region and fell below the critical threshold of $14,000 per ton.
Global markets are buckling under the pressure of bad news from the Middle East and escalating military tensions. The collapse of expectations for a potential deal between the US and Iran has triggered a sharp pullback in copper prices, which have been the leader among industrial metals since the war began in March.
SHARP REVERSAL FROM THE PEAK: FELL BELOW $14,000
Three-month copper futures contracts traded on the London Metal Exchange (LME) started the week strong, gaining 3% in the first two trading days. The metal closed Tuesday at $14,040.50, its highest level since May 13, but could not sustain this success. As the perception that no agreement would be reached in the Middle East strengthened, copper prices fell 0.4% to $13,983 per ton.
CONFLICTS TRIGGER INFLATION AND INTEREST RATE CONCERNS
The copper market has been one of the sectors hardest hit by geopolitical crises in the region since the beginning of the year. Tensions have reached an unstoppable level with Iran's attacks on Kuwait and the US targeting Qeshm Island.
Market experts are highly concerned about the consequences of this critical situation. There are fears that the war will reignite global inflation and, consequently, central banks will keep interest rates high. This expectation is severely undermining global demand for copper. The direct attacks on aluminum producers in the Persian Gulf have also pushed aluminum prices to their highest level in four years.
TRUMP'S EXTRA TARIFF THREAT LOOMS
Another negative development cornering copper investors is the expected US tariff decision. It is being discussed that the Trump administration could impose additional tariffs on imported copper at any moment. Ahead of this tariff threat, copper stocks in the US, acting with a protectionist reflex, have rapidly multiplied, while in the rest of the world, supply conditions are reported to be increasingly deadlocked and tightening.