Copper remained below $5.50 per pound on Monday, struggling to gain momentum as investors weighed persistent unrest in the Middle East, with little indication of de-escalation. Tensions intensified after Iran-backed Houthi militants in Yemen entered the conflict over the weekend, launching attacks on Israel. Adding to geopolitical uncertainty, former President Donald Trump said he could “take the oil in Iran,” invoking parallels with the US military operation in Venezuela earlier this year.
Copper and other industrial metals have been under pressure this month as the conflict’s disruptions, combined with surging energy prices, have amplified concerns about inflation and a slowdown in global industrial activity. These upward price pressures have also strengthened expectations that major central banks may raise interest rates this year, with markets now pricing in a possible hike by the Federal Reserve—a sharp shift from earlier forecasts that anticipated two rate cuts.
