Copper futures surged nearly 3% to approach $5.70 per pound on Wednesday, reaching a three-week high after Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week ceasefire with the US and Israel, easing demand-related concerns.
President Donald Trump said the US had received a 10-point proposal from Iran, which he described as a “workable basis for negotiations.” The two-week ceasefire window is intended to allow time for a potential agreement to be finalized and implemented.
The temporary reopening of the key shipping corridor is expected to alleviate investor fears over inflation and a slowdown in global industrial activity, both of which have weighed on the demand outlook for industrial metals.
Earlier this week, Goldman Sachs warned of near-term downside risks for copper prices if the Strait of Hormuz remained closed, noting that persistently high energy costs could dampen global economic growth.
