US copper futures climbed above $6.10 per pound, the highest level in more than two months, in line with gains across most industrial metals. The rally was driven by signs that trade flows through the Strait of Hormuz are normalizing, which has brightened the outlook for global manufacturing activity and weighed on the US dollar.
Iranian authorities announced that commercial vessels transiting the Strait of Hormuz will no longer be targeted, reinforcing expectations of a restored fuel supply from the region and lower operating costs for major manufacturers. This, in turn, is bolstering demand for industrial metals.
At the same time, a reduced flight to safety has contributed to a weaker US dollar, making dollar-denominated commodities more attractive to overseas buyers and further supporting copper prices. Physical demand was already underpinned by China as firms entered their restocking season.
Longer-term demand prospects also remain constructive, supported by sustained investment in electrification, including power grids, data centers, and electric vehicles.
