Copper prices rose to their highest level in over a month, with most other industrial metals also advancing, driven by market optimism that the United States and Iran may restart peace negotiations. U.S. President Donald Trump stated that Tehran has contacted his administration regarding potential talks, even as Washington began a maritime blockade in the Strait of Hormuz. Iran remains open to further dialogue, though investors remain cautious about renewed market volatility due to risks of escalation.
Since the outbreak of conflict in the Middle East in February, industrial metal prices have experienced sharp fluctuations. Initially, concerns over soaring energy costs and hindered economic growth weighed on markets, but prices later recovered as signs emerged that the conflict might be nearing an end. This week, aluminum surged to a four-year high due to further supply disruptions caused by the U.S. blockade. The Middle East accounts for approximately 9% of global aluminum production.
According to Jia Zheng, a trading manager at Suzhou创元 and赢 Capital Management, investors have already priced in expectations of easing macro risks. He suggested the situation is likely to be a prolonged tug-of-war, similar to the Russia-Ukraine conflict, with its impact on markets gradually diminishing.
As of 10:18 a.m. Beijing time, copper on the London Metal Exchange was up 0.4% at $13,107.50 per ton, after earlier reaching $13,162—the highest since March 10. Aluminum prices rose 0.3% to $3,617.50 per ton.
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