Copper prices rise as US-Iran peace deal hopes weaken dollar and oil

Copper Prices Climb on US-Iran Peace Deal Hopes

Copper prices rose on Monday as hopes for a potential peace deal between the United States and Iran pressured the dollar and oil, easing concerns over inflation and a global economic slowdown. Three-month copper on the London Metal Exchange (LME) gained 0.9% to $13,635 a metric ton, while the most-traded contract on the Shanghai Futures Exchange advanced 1.1% to 105,650 yuan.

Geopolitical Optimism Eases Inflation Fears

The prospect of a peace agreement that could reopen the Strait of Hormuz pushed oil prices below $100 per barrel, cooling the energy-driven inflation worries that had rattled markets during the Middle East conflict. ANZ analyst Soni Kumari noted that positive conflict news is supporting industrial metals sentiment, though base metals remain caught between short-term demand headwinds and supply disruptions. President Trump cautioned against rushing into a deal but earlier stated that a memorandum of understanding had been largely negotiated.

Weaker Dollar and Falling Stocks Add Support

The U.S. dollar index slipped 0.2%, making greenback-priced commodities cheaper for other currency holders. Meanwhile, available copper stocks in LME warehouses dropped to a ten-week low of 275,525 tons. As a bellwether for the global economy, copper is finding demand support even as markets weigh mixed signals. Other LME metals also rose: aluminium added 0.5%, zinc gained 0.6%, lead climbed 0.4%, nickel advanced 0.8%, and tin jumped 2.2%.