Benchmark three-month copper on the London Metal Exchange fell 0.72% to $13,387 a metric ton on Monday, weighed down by renewed geopolitical tensions in the Middle East.
The decline in the industrial metal contrasts with the broader market reaction to the escalating conflict between the United States and Iran, which has triggered a flight to safety across asset classes.
The price drop in copper reflects investor concern that the conflict could disrupt supply chains and drive up energy costs, thereby reigniting inflationary pressures.
While industrial metals typically benefit from risk-on sentiment, the immediate fear of supply-side shocks and higher input costs has dampened demand for base metals.
This dynamic highlights the complex interplay between geopolitical risk and commodity pricing, where inflation expectations can outweigh industrial demand signals.
The sell-off in copper comes amid a broader retreat in precious metals, which have also struggled despite the risk-off environment.