FX.co ★ Copper Pressured by Escalating Middle East Tensions

Copper futures fell to approximately $4.81 per pound on Monday, reversing gains made in the previous session. This decline occurred amidst rising geopolitical tensions that adversely impacted market sentiment. The downward trend followed U.S. airstrikes on three Iranian nuclear facilities over the weekend, signaling a significant escalation as the United States joined Israel in its ongoing conflict with Iran. The action heightened fears of potential retaliation from Tehran, including possible disruptions to global oil shipments through the Strait of Hormuz. Beyond the geopolitical risks, copper also experienced pressure from increasing concerns about a potential destocking cycle in the United States. Analysts warned that once the specifics of President Donald Trump's new tariffs on copper imports are finalized, American buyers—who had previously accelerated purchases earlier this year—might drastically reduce orders, contributing to short-term demand uncertainty.