Copper held below $5.5 per pound on Monday, struggling for traction as investors navigated ongoing hostilities in the Middle East that showed no signs of easing. Tensions escalated as Iran-backed Houthi militants in Yemen joined the conflict, targeting Israel over the weekend. President Donald Trump also said he could “take the oil in Iran,” echoing the US military operation in Venezuela earlier this year. Copper and other industrial metals have come under pressure this month as disruptions from the conflict and surging energy prices heightened concerns over inflation and slowing global industrial activity. Upward price pressures have also reinforced expectations that major central banks may raise interest rates this year, with markets are now pricing in a potential rate increase from the Federal Reserve, a sharp reversal from earlier expectations for two rate cuts.
