Copper futures climbed to around $6.4 per pound on Monday, marking their highest level in more than a week as market sentiment improved on expectations that the US and Iran were moving closer to an agreement that could reopen the Strait of Hormuz. The development helped ease concerns over inflation and the possibility of further interest rate hikes.
However, President Donald Trump stated that the US would continue its blockade of the Strait of Hormuz until an official agreement is finalized, adding that Washington would not rush into negotiations.
At the same time, copper futures continued to receive support from the strong rally in AI-related technology stocks since early May. Growing investment in electrification and data center infrastructure has reinforced expectations for stronger copper demand in the near future.
The global transition toward clean energy also remained a key factor supporting long-term copper consumption worldwide.
Meanwhile, supply-side concerns related to the Middle East conflict continued to underpin the market. In particular, worries about sulfur shortages, a critical material used in copper smelting, added further support to copper prices.
