Middle East Tensions Weigh on Copper Prices as Oil Costs Rise

Copper prices fell on Wednesday as tensions between the US and Iran escalated, casting a cloud over global growth prospects. The metal dropped 0.3% to $14,226 per metric tonne on the London Metal Exchange (LME), its lowest level since August 21.

The decline marked the second consecutive session of losses for copper, which had reached a seven-month high of $14,441.50 on Tuesday. The sell-off was driven by investor anxiety over the economic consequences of the conflict in the Middle East, including potential disruptions to energy markets and higher oil prices.

John Meyer, an analyst at SP Angel, attributed the decline in base metals to higher oil prices caused by the renewed conflict between the US and Iran. He noted that expectations are growing for a US Federal Reserve rate hike in September, which could further weigh on sentiment towards industrial metals.