Copper Slips on Geopolitical Jitters

Copper futures fell to around $6.16 per pound, giving back some of last week’s gains as escalating tensions in the Middle East kept inflationary pressures and interest-rate hike expectations in focus, clouding the demand outlook for industrial metals. The US carried out its fourth strike in a week against Iran on Sunday in retaliation for an Iranian attack on a Cyprus-flagged container ship. Tehran declared that the Strait of Hormuz would be closed “until further notice,” though the claim was dismissed by the US Central Command. Rising oil prices revived concerns over inflation and tighter monetary policy, with markets expecting the Federal Reserve to raise interest rates at least once before the end of the year. Investors are now awaiting key US inflation data and Fed Chair Kevin Warsh’s appearance before the US Congress this week. Copper, widely regarded as a barometer of global economic growth, remained highly sensitive to changes in the economic and monetary policy outlook.

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