Copper snapped a two-day loss and rose as much as 1% in London on July 9, 2026, with the increase tracking gains in Asian equities, particularly semiconductor firms. This rally partially offset a larger loss experienced in the previous session due to escalating conflict between the US and Iran. The industrial metal, crucial for wiring and renewable energy, is anticipated to benefit from a boost in power demand stemming from new data centers for artificial intelligence.
The broader market for base metals, however, has recently experienced declines due to renewed hostilities between the US and Iran. This geopolitical flare-up has heightened risk, prompting investors to sell off risk assets and seek safe-haven currencies. The downturn in metal prices reflects concerns that a prolonged conflict could disrupt supply chains and diminish industrial demand, impacting sectors like construction and technology where metals are key inputs.
Over the weekend, as of July 13, 2026, LME benchmark three-month copper declined 0.64% to $13,398.5 a metric ton, and the most-traded copper contract on the Shanghai Futures Exchange fell 0.68% to 103,100 yuan ($15,199.54) a ton. This decline was part of a broad-based sell-off across global commodity markets following missile and drone strikes between the US and Iran. The escalation of war, particularly the closure of the Strait of Hormuz by Tehran, pushed Brent crude up 2.79% to $78.13 per barrel, renewing inflation risks and fears of prolonged high interest rates, which typically dampen economic activity and demand for base metals. A stronger US dollar also made dollar-denominated commodities more expensive, further pressuring prices. Other base metals like LME aluminum, zinc, lead, nickel, and tin also saw declines.
