Copper Prices Soar to Record High Amid US-Iran Conflict and Tariff Expectations

Global commodity markets are experiencing a surge in prices due to escalating US-Iran conflict and tariff expectations. Copper futures on the London Metal Exchange (LME) broke above $14,533 per metric ton intraday, setting a new all-time high, while West Texas Intermediate (WTI) crude climbed above $92 per barrel in Asian trading.

The direct driver behind copper's record high is not a sudden surge in end-user demand, but rather a massive global inventory reshuffle triggered by US tariff policy expectations. Since US President Donald Trump first formally proposed tariffs on copper in February last year, COMEX copper futures have maintained a sustained premium over the London market.

Michael Cuoco, head of metals at StoneX Financial, believes that strong demand growth coupled with supply difficulties will tighten the market further going forward, supporting higher copper prices. The consequence of this inventory migration is a sharp decline in deliverable stockpiles on the London market.