Prices for aluminum and copper advanced on Tuesday, with aluminum poised to reach its highest closing level in four years, as cautious optimism over a prospective U.S.-Iran peace agreement improved the demand outlook for base metals.
As of now, copper on the London Metal Exchange rose 0.4% to $13,690 per ton; aluminum gained 0.38% to $3,686 per ton, with the latter on track to set a four-year closing high. Iron ore futures on the Singapore Exchange were largely flat at $105.10 per ton.
Former President Trump indicated that negotiations to extend a ceasefire with Iran and reopen the Strait of Hormuz are progressing. However, according to reports, U.S. Secretary of State Rubio stated on the 26th that finalizing the wording of the agreement text would "take several more days." Despite recent renewed attacks on vessels and infrastructure in the Persian Gulf region, the ceasefire has largely held since early April.
Over the past two weeks, as the U.S. and Iran have moved closer to a deal, metal prices have continued to climb, easing market concerns that prolonged global economic pressures would subsequently dampen demand for industrial metals. Copper has additionally benefited from investment enthusiasm surrounding artificial intelligence infrastructure-related assets.
The Strait of Hormuz is a critical global chokepoint for commodity transportation, and any disruption to its passage directly impacts raw material supply expectations. Beyond geopolitical factors, the rise in copper prices is also being driven by an investment surge in AI infrastructure. As a core material for power transmission and data center construction, copper is closely tied to market enthusiasm for AI-related assets, providing structural support for its price independent of broader macroeconomic conditions.
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