Copper futures slipped below $5.80 per pound on Friday, logging a third straight session of declines as the US dollar strengthened amid the ongoing war in the Middle East and a sharp rise in oil prices. The conflict involving the United States, Israel, and Iran showed no sign of easing, with crude prices surging after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed while Tehran escalated attacks on regional oil and transport infrastructure.
The resulting increase in forward-looking inflation risks further tempered expectations for Federal Reserve rate cuts, with markets now largely pricing in only a single reduction later this year, lending additional support to the dollar.
In corporate developments, China’s Jiangxi Copper completed its acquisition of SolGold, gaining control of the Cascabel copper-gold porphyry project and the company’s wider exploration portfolio in Ecuador, thereby reinforcing China’s foothold in the country’s strategic resource sector.
