Copper hits 3-week low on dollar strength as Middle East war intensifies
- Benchmark three-month copper on the London Metal Exchange fell 0.8% to $12,897 per metric ton
London copper prices eased on Tuesday, hitting their lowest in three weeks, pressured by a firm dollar as ongoing tensions in the Middle East kept concerns over global growth slowdown simmering.
The US and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with duelling maritime blockades.
It came not long after US President Donald Trump launched a new effort to get stranded tankers and other ships through the vital energy-trade chokepoint.
Benchmark three-month copper on the London Metal Exchange fell 0.8% to $12,897 per metric ton by 0340 GMT, having hit its lowest level since April 13.
Trading activity was muted, with the Shanghai Futures Exchange closed until Wednesday for the Labour Day holiday.
“Equities are down, and the news coming out of the Middle East has been supportive for the dollar, which has weakened base metal prices,” said Marex analyst Edward Meir. The US dollar rose on safe-haven demand as Middle East tensions continued to weigh. Stocks in Asia slid while oil prices eased but remained well above $100 a barrel.
Among other LME metals, aluminium fell 0.7%, nickel slipped 0.4%, lead was up 0.1%, tin lost 0.8%, and zinc shed 0.9%.
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