Copper futures rose to around $6.40 per pound on Monday, their highest level in more than a week, as investor sentiment improved on signs that the US and Iran were edging closer to an agreement that could reopen the Strait of Hormuz. Such a development would likely ease inflationary pressures and reduce the need for further interest rate hikes.
However, President Trump stated that Washington would maintain its blockade of the Strait of Hormuz until a formal deal is finalized, emphasizing that he would not “rush” into an agreement.
Copper prices also continued to benefit from the strong rally in AI-related technology stocks that began in early May, bolstering expectations of higher demand driven by electrification and increased wiring requirements in data centers. Further support stemmed from the global shift toward clean energy, which is expected to underpin long-term copper consumption.
At the same time, supply concerns tied to the conflict in the Middle East—particularly shortages of sulfur, a key input in copper smelting—continued to lend additional support to prices.
