Copper futures fell below $5.70 per pound on Monday, sliding to multi-week lows amid mounting concerns that the conflict in the Middle East could be more protracted than expected and trigger lasting economic disruption. Oil prices surged past $100 a barrel for the first time since 2022, intensifying fears that higher energy costs could dampen global growth and reignite inflationary pressures.
The US-Israeli war with Iran entered its second week with no sign of a resolution, while US President Donald Trump demanded Tehran’s unconditional surrender. Copper prices also faced headwinds from a strengthening US dollar, as investors sought the currency as a safe haven and reassessed their outlook for Federal Reserve policy in light of renewed inflation risks.
In China, the world’s largest consumer of copper, annual inflation accelerated to a three-year high in February, partly fueled by robust spending during the Lunar New Year holiday.
