Copper futures continued to weaken on Wednesday, with prices falling to around $6.1 per pound, marking the lowest level in nearly two weeks. The decline reflected growing caution across the copper market as investors reacted to escalating geopolitical tensions in the Middle East.
Market sentiment deteriorated after President Donald Trump warned that the US could resume strikes on Iran within “two or three days” if Tehran failed to agree to Washington’s peace terms.
The prolonged conflict has also disrupted shipping activity through the strategically important Strait of Hormuz, driving oil prices higher and increasing inflation concerns worldwide. Rising energy costs have strengthened expectations that central banks may maintain elevated interest rates for longer.
Higher borrowing costs are expected to slow global economic growth and manufacturing activity, creating additional pressure on the copper market and overall industrial metals demand.
Meanwhile, fresh signs of weakness in China’s economy added further downside pressure. Retail sales and industrial production both missed expectations, while fixed asset investment unexpectedly contracted, signaling softer demand conditions in the world’s largest copper-consuming nation.
