Copper futures dipped below $6 per pound on Tuesday, remaining under pressure as investors grew cautious ahead of further US–Iran peace talks. Delegations from both sides are expected to travel to Islamabad for a second round of negotiations before the current ceasefire expires. However, President Donald Trump signaled he is unlikely to extend the truce and indicated that the Strait of Hormuz will stay closed until a final agreement is reached.
Ongoing disruptions at this critical shipping chokepoint have deepened the energy shock, heightening inflation and growth risks and weighing on manufacturing activity and demand for industrial metals more broadly.
Even so, copper’s longer-term outlook remains supported by structural drivers, including global electrification, the rapid expansion of artificial intelligence–related infrastructure, and steady consumption from power grid upgrades and construction. On the supply side, production continues to be constrained by mining disruptions, chronic underinvestment, and lengthy lead times for bringing new projects online.
