Copper Surges Near Record High Amid US Tariff and Hormuz Optimism

Copper futures have been trading near an all-time high in New York as investors await a decision on US tariffs and track developments in the Middle East. The metal has gained about 17% on Comex this year, with its premium over London Metal Exchange prices increasing due to higher US rates that have kept large volumes flowing to American ports.

The Strait of Hormuz situation has given way to hopes for an agreement to reopen the strait, with US President Donald Trump stating that negotiations with Tehran were going well. This optimism has softened inflation concerns and led traders to rein in bets on Federal Reserve interest rate hikes over the rest of 2026.

Copper prices on Comex are up 0.7% at $6.689 a pound, nearing the record set in May. On the London Metal Exchange, copper is up 0.2% to $14,089 a metric tonne after surging on Tuesday to its highest close since May.