Copper Hits One-Week Low on Middle East Tensions

Copper Prices Fall Amid Middle East Tensions

Copper prices steadied at a one-week low on Thursday as renewed tensions in the Middle East pushed the dollar and crude oil prices higher, fueling inflation and economic slowdown concerns. Three-month copper on the London Metal Exchange (LME) was steady at $13,530 a metric ton, while the most-traded copper contract on the Shanghai Futures Exchange fell 0.9% to 103,990 yuan per ton.

Middle East Developments Impact Markets

The U.S. military carried out new strikes targeting an Iranian drone operation in the Strait of Hormuz, driving the U.S. dollar index to a one-week high. Independent metals trader Tai Wong noted, 'Dollar at highs and an impasse in Hormuz isn't helping sentiment.' Higher crude oil prices have dimmed the outlook for metals due to the risk of an energy shock squeezing global growth and manufacturing.

Other Metals and Stock Levels

Three-month aluminium on the LME fell 0.4% to $3,621 a metric ton, while zinc, lead, nickel, and tin also declined. Depletion of available copper stocks in LME warehouses continued, while COMEX copper stocks saw further inflows. On the Shanghai Futures Exchange, aluminium fell 1.1%, zinc 0.6%, lead 1%, nickel 0.8%, and tin 0.8%.