Copper prices retreated on Thursday, erasing early session gains as the industrial metal tracked a broader downturn in equity markets.
The decline was driven by a sharp rise in oil prices, which climbed to their highest level in more than seven weeks amid escalating hostilities in the Middle East.
The surge in energy costs is weighing on the economic outlook, creating headwinds for industrial demand.
Higher oil prices increase input costs for manufacturers and transporters, while also raising concerns about potential inflationary pressure that could constrain monetary policy flexibility.
This dynamic has prompted investors to rotate away from cyclical commodities like copper, which are sensitive to growth expectations.
The move in copper follows a period of volatility for the metal.