Benchmark three-month copper on the London Metal Exchange fell 0.6% to $13,725.50 a metric ton on Thursday, erasing earlier 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 levels in over a year, intensifying concerns that soaring energy costs could dampen global economic growth and curb demand for industrial commodities.
The cross-asset reaction highlights the growing tension between energy inflation and industrial demand.
As oil prices hit multi-year highs, traders are repricing the risk that higher input costs will squeeze corporate margins and slow manufacturing activity, particularly in energy-intensive sectors.
This dynamic has created headwinds for copper, a key barometer of global industrial health, as investors weigh the potential for a demand slowdown against supply-side constraints.
The move follows a period of volatility in base metals, with copper previously retreating on fears of tighter monetary policy.