Copper Hits Record High as Oil Prices Hold Near $98 Amid Ongoing Tensions

Copper prices reached a record high for the second consecutive session on Tuesday, trading at $14,624.5 per tonne on the London Metal Exchange (LME). The metal's surge is attributed to persistent market tightness, exacerbated by large flows of refined copper to the US ahead of potential tariff announcements.

The recent increase in copper prices has been driven by a mismatch between constrained mine supply and growing demand from data centres, renewable energy infrastructure, and power grids. This year alone, copper has gained 17% underpinned by these factors.

Meanwhile, crude oil prices held steady near $98 per barrel, with Brent briefly topping $98 on Monday. Iran's announcement that a shipping-management deal with Oman is imminent raised questions about the US response to renewed tensions in the Strait of Hormuz.