Copper fell below $5.40 per pound on Tuesday, paring gains from the previous session as hopes for de-escalation in the Middle East faded. Sentiment deteriorated after Iran denied holding talks with the United States to resolve the standoff, rejecting President Donald Trump’s comments as an attempt to manipulate financial markets and subsequently launching new attacks on US targets, while Israel continued its strikes on Iran.
On Monday, copper had rebounded nearly 2% after Trump postponed planned US strikes on Iranian energy infrastructure, saying negotiations were in progress. However, the prospects for any meaningful talks, as well as the potential reopening of the Strait of Hormuz, remain highly uncertain, keeping traders cautious.
At the same time, ample inventories at major global exchanges continued to pressure prices, with LME stockpiles hovering near six-year highs and HFE inventories close to record levels.
