13.07.202603:47:49UTC+00Copper Slips on Geopolitical Jitters

Copper futures slipped to around $6.16 per pound, retracing part of last week’s gains as escalating tensions in the Middle East reinforced inflation concerns and expectations of further interest-rate hikes, weighing on the demand outlook for industrial metals. The United States carried out its fourth strike in a week against Iran on Sunday, in response to an Iranian attack on a Cyprus-flagged container ship. In turn, Tehran announced that the Strait of Hormuz would be closed “until further notice,” a claim that was later dismissed by US Central Command. Rising oil prices have reignited worries about persistent inflation and tighter monetary policy, with markets now pricing in at least one Federal Reserve rate increase before year-end. Investors are closely watching upcoming US inflation data and Federal Reserve Chair Kevin Warsh’s testimony before Congress this week. Copper, a widely followed gauge of global economic activity, remains highly sensitive to shifts in the economic and monetary policy outlook.