Copper Slips From Record High As Middle East Tensions Weigh.
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Global copper prices pulled back from record highs during Wednesday's session, pressured by escalating geopolitical conflicts in the Middle East that stoked broader economic growth anxieties and pushed energy costs higher. Three-month copper on the London Metal Exchange (LME) retreated 0.5% to $14,641 per metric ton, following a record peak of $14,779 a ton. The broader risk-off sentiment was catalyzed by oil prices surging past $100 a barrel amid intensifying U.S.-Iran friction, which magnified global inflation concerns and cast a shadow over industrial commodity demand.Despite the intraday correction, copper retains a robust 17% gain for 2026, underpinned by massive structural import flows into the United States driven by anticipated Section 232 tariff policies. Market analysts note that over 1.2 million tonnes have been redirected toward U.S. markets since early 2025, depleting exchange inventories elsewhere. On the COMEX exchange, front-month contracts eased 0.9% to $6.76 a pound, with total inventories hovering near 797,275 short tons.
Copper prices eased from record levels on Wednesday as escalating Middle East tensions raised concerns over global economic growth and demand for industrial metals.
Three-month copper on the London Metal Exchange (LME) fell 0.5% to $14,641 per metric ton by 0945 GMT, after touching a record $14,779 a ton on Tuesday.
The pullback came as oil prices climbed above $100 a barrel, following a sharp escalation in fighting involving Iran and the United States. Higher energy costs have increased concerns about inflation and the potential impact on global growth.
ING commodities strategist Ewa Manthey said investors were becoming more cautious about the broader economic outlook as rising oil prices increased inflation risks and could weaken demand for industrial commodities.
Despite the decline, copper remains up about 17% so far in 2026. The rally has been supported by large flows of copper into the United States amid expectations of possible tariffs on refined copper, tightening supplies available in other markets.
StoneX analyst Natalie Scott-Gray estimated that more than 1.2 million tonnes of copper had entered the US since Washington launched its Section 232 investigation into copper in February 2025, leaving available supplies outside the country at historically low levels.
On the US exchange, COMEX copper fell 0.9% to $6.76 a pound, while the premium of COMEX copper over LME copper stood at $267 a ton. COMEX inventories reached 797,275 short tons, equivalent to about 723,275 metric tons.
Other base metals showed mixed movement. LME zinc gained 0.3% to $4,032 a ton, while aluminium fell 0.4%, lead declined 0.2% and nickel slipped 0.1%. Tin advanced 0.6% to $55,200 a ton.
