FX.co ★ Copper Holds Firm as Ceasefire Boosts Risk Sentiment

Copper futures remained above $4.86 per pound on Tuesday, maintaining gains from the previous session. This stability came as investor sentiment improved after U.S. President Donald Trump announced a ceasefire agreement between Israel and Iran. The news bolstered risk appetite across the markets, alleviating fears of a wider geopolitical escalation. This followed Iran's retaliatory strike on a U.S. base in Qatar, which resulted in no casualties and did not disrupt the crucial Strait of Hormuz. However, copper prices faced limitations due to escalating concerns about a potential destocking cycle in the United States. Analysts cautioned that once the specifics of Trump's new tariffs on copper imports are clarified, U.S. buyers—many of whom had increased their purchases earlier in the year—might significantly reduce their orders, thereby casting uncertainty on the near-term demand outlook.