06.04.202604:35:50UTC+00Copper Rises as Risk Sentiment Improves

Copper futures rose toward $5.60 per pound on Monday, rebounding from the previous session’s losses as sentiment improved on hopes for a ceasefire in the Middle East. The United States, Iran, and a group of regional mediators are reportedly working on the terms of a potential 45-day truce that could lay the groundwork for a more durable settlement of the conflict.

The prospect of an agreement helped calm markets after President Donald Trump recently imposed a new deadline on Iran and intensified threats against its power plants and other civilian infrastructure should the Strait of Hormuz remain closed. Copper prices had previously come under pressure as rising energy costs and the risk of supply disruptions darkened the outlook for industrial demand and global growth.

Despite the latest rebound, the metal remains lower on the year, weighed down by ample supply and mounting inventories. Stockpiles on the London Metal Exchange are hovering near six-year highs, while holdings on the Shanghai Futures Exchange are close to record levels.