Benchmark three-month copper on the London Metal Exchange (LME) fell 0.18% to $13,516 a metric ton on Tuesday, as concerns over weakening global demand offset potential supply chain disruptions stemming from escalating tensions in the Middle East.
The slight decline in the industrial metal highlights a market caught between two opposing forces: the risk of physical supply constraints from the Strait of Hormuz and broader macroeconomic headwinds.
64% amid heightened military conflict between the United States and Iran.
While geopolitical friction typically supports commodity prices through supply-side fears, traders are currently prioritizing demand-side risks, particularly regarding the economic outlook in major consuming regions.
This dynamic follows a similar session on Monday, when LME copper dropped 0.64% amid heightened military conflict between the United States and Iran.
The persistent pressure on industrial metals suggests that risk sentiment remains fragile, with investors wary of how prolonged geopolitical instability could impact global growth and industrial activity.
The divergence between copper and energy markets is notable.