Copper Prices Rise on Eased Tensions Between US and Iran

Copper prices rose on Monday as tensions between the US and Iran eased, with benchmark three-month copper gaining 0.26% to $13,681 a metric ton on the London Metal Exchange.

The metal has been supported by waning stocks outside the US, particularly in China, where SHFE-monitored warehouses held only 69,610 tons of copper as of last week, their lowest level since February 2024.

The tentative truce between the two nations also brought relief to oil prices, with Brent crude falling more than 4% on Monday. Expensive energy can raise inflation fears and lead to bets on higher interest rates, which could weigh on growth-dependent commodities like copper by dampening economic activity.

However, the market will be closely watching Wednesday's US Federal Reserve meeting for its interest rate decision, with traders pricing in a 63.7% chance of no rate change at this meeting, according to the CME's FedWatch tool.