Copper Slips Amid Soaring Oil Prices and Escalating Middle East Tensions

Copper prices have declined for a second consecutive day, weighed down by soaring oil costs that are heightening inflation concerns and potentially dampening economic growth. The benchmark three-month copper price on the London Metal Exchange (LME) is currently trading at $13,739 per metric ton, marking a 0.5% drop.

The rise in oil prices to nearly two months high has investors worried about the impact of escalating hostilities in the Middle East on global economic outlooks. Oil prices have jumped by as much as 5.3% to $99.08 per barrel, with Yemen's Iran-aligned Houthis stating they attacked two oil tankers as part of a blockade on Saudi Arabia.

Copper is considered a bellwether for the global economy, and higher energy costs may increase the likelihood of interest rate hikes. However, dwindling inventories are still supporting copper prices, with available LME stocks at 107,850 tons, the lowest since January.