The U.S. military has announced a new wave of airstrikes against Iran, with the White House stating the country is facing "devastating blows."
According to reports, the U.S. Central Command stated that operations began at 2 p.m. Eastern Time on July 16, marking the fifth consecutive night of American strikes against Iran.
Targets included the port city of Bandar Abbas in southern Iran, where a communications tower was hit, causing power outages in parts of the city. A residential area was also reportedly struck, injuring seven people.
Additional strikes were reported on Qeshm Island, with local villagers hearing eight explosions, and on Shahre Kord Airport in Sistan and Baluchestan province, where three loud blasts were heard near the facility.
Officials in Iran's Khuzestan and Bushehr provinces also reported attacks on multiple sites around Ahvaz and within Bushehr city.
White House Press Secretary Karine Jean-Pierre stated that Iran remains in dialogue with the U.S., expressing a desire for an agreement because it is suffering "devastating blows."
She added that recent U.S. actions were in response to Iran violating a memorandum of understanding by allegedly firing on commercial vessels transiting the Strait of Hormuz.
Separate reports, citing British sources, suggest Iran may have instructed Yemen's Houthi rebels to blockade the Mandeb Strait if U.S. attacks target Iran's power grid. The Iranian government has not commented on this claim.
The Mandeb Strait is a critical maritime chokepoint connecting the Red Sea to the Gulf of Aden and is a vital waterway for global trade.
In U.S. markets, major indices closed lower, with the tech-heavy Nasdaq falling sharply. The Dow Jones Industrial Average dropped 0.20%, the Nasdaq Composite declined 1.47%, and the S&P 500 fell 0.51%.
Major technology stocks were mostly lower. SpaceX fell 3.08%, Meta Platforms Inc dropped 2.46%, NVIDIA Corp declined 2.40%, Amazon.com Inc lost 1.99%, and Tesla Inc dipped 0.86%. Apple Inc and Microsoft Corp were notable gainers, rising 1.76% and 1.38% respectively.
The memory chip sector saw significant losses. SK Hynix Inc plunged 13.48%, SanDisk dropped 12.6%, Seagate Technology PLC fell 10%, and Western Digital Corp declined 9.22%.
In the optical communications space, Corning Inc fell over 9% and Lumentum Holdings Inc dropped 6.1%. Semiconductor stocks also sold off, with Intel Corp, Arm Holdings plc, Advanced Micro Devices Inc, and Micron Technology Inc all falling more than 5%.
Copper Market Fundamentals Remain Strong
Analysts point to robust fundamentals in the copper market. Severe winter weather in Chile, a major copper producer, is expected to disrupt road transport and port operations from July 16-17, potentially extending through July 20-21, posing a risk of delayed exports.
Supply challenges in Chile predate the current weather. While Chilean mining exports reached $36.8 billion in the first half of 2026, a 20.4% year-on-year increase, production at several major copper mines has declined. Mining activity in May 2026 fell 11.6% year-on-year.
Factors including water scarcity, declining ore grades, equipment maintenance, ore type transitions, and labor disputes are contributing to production uncertainty.
Domestic copper prices in China have rebounded slightly in July. Analysts note healthy inventory drawdowns in China, suggesting limited downside for prices with a potential for gradual strengthening later.
Fundamentals are seen as supportive. The ongoing U.S. policy debate over copper tariffs has led traders to pre-position metal in the U.S., creating a global resource mismatch that supports prices. In China, while traditional consumption sectors like property and appliances are in a seasonal lull, stable prices have encouraged downstream processors to make purchases, leading to continued inventory declines.
Macroeconomic factors remain key for copper prices. Lower-than-expected U.S. June inflation data led to a market reassessment of aggressive rate hike expectations, easing pressure as the U.S. dollar and bond yields retreated. The potential outcome of the U.S. "Section 232" investigation and any resulting tariffs on copper remain a major market focus, with prices expected to strengthen if tariffs are imposed.
The Chilean government has revised its 2026 economic growth forecast down to 1.8% but raised its average copper price estimate for the year to $5.90 per pound from $5.46.
Analysts suggest the copper market will return to trading on fundamentals in the second half of the year. With Chinese destocking progressing well, risk-tolerant traders could consider buying on dips, while more risk-averse investors might look at calendar spread opportunities.
However, some caution that copper prices are still caught between macro and fundamental forces. The immediate price direction will depend on the actual impact of the Chilean weather on mine output and port logistics, the final decision on U.S. copper tariffs, and the pace of inventory drawdowns in China.
Comments