Copper rises to two-week high on hopes for end to Iran war

Copper rose to two-week highs on Wednesday, as investors are betting on signs of de-escalation in the ongoing war in the Middle East.

The benchmark three-month copper on the London Metal Exchange rose 1.03% to $12,463 a metric ton as of 0243 GMT after hitting $12,414, the highest since March 18.

The most-active copper contract on the Shanghai Futures Exchange gained 1.54% to 97,030 yuan ($14,093.57) a ton, following a rise to 97,250 yuan, the highest since March 19.

President Donald Trump said on Tuesday that the military attacks on Iran by the United States could endwithin two to three weeks,even without a deal with Tehran.

Trump is expected to address the nation “to provide an important update on Iran” at 9 p.m. EDT on Wednesday (0100 GMT on Thursday).

Trump’s comments provided some relief for copper, a metal seen as a barometer of macroeconomic health and used widely in power and construction.

The red metal recently came under pressure as rising oil prices amid the war dampened growth outlook and stoked inflation fears.

London copper declined 7.55% in March, its worst month since June 2022, after the US and Israel attacked Iran.

On the other hand, the US dollar weakened, which makes commodities denominated in the greenback more affordable for investors using other currencies.

Demand in China continued to show signs of recovery, as stocks monitored by the SHFE declined for a second consecutive week to 359,135 tons as of March 27, according to the exchange’s weekly stock data.

Elsewhere on the LME, aluminium nudged 0.17% lower, zinc was little changed, up only 0.03%, lead gained 1.26%, nickel rose 0.91% and tin climbed 1.25%.

Among other metals on the SHFE, aluminium ticked 0.02% lower, zinc gained 0.15%, lead rose 1.21%, nickel nudged 0.07% higher and tin rose 1.47%.