Copper futures slipped below $6.4 per pound on Tuesday, giving back part of the previous session’s gains as ongoing uncertainty in the Middle East continued to raise concerns over inflation and interest rates. Reports indicated that the US military had targeted missile launch sites and vessels suspected of deploying mines in southern Iran. However, President Donald Trump stated that negotiations with Tehran were moving in a positive direction.
Despite the decline, copper futures remained supported by the strong rally in AI-related technology stocks since early May. Growing investment in electrification projects and data center infrastructure has strengthened expectations for higher copper demand in the coming years.
Additional long-term support for the market comes from the global transition toward clean energy, which is expected to drive sustained copper consumption worldwide.
At the same time, supply-side risks linked to tensions in the Middle East continue to support prices. Concerns over potential sulfur shortages, an important material used in copper smelting, have added further pressure to the global copper supply chain.
