Base metal prices moved higher on Monday, with copper and aluminium gaining ground after U.S. President Donald Trump delayed a key military ultimatum against Iran, offering markets a brief window of relief amid ongoing geopolitical tensions.
Copper futures edged higher, supported by improved risk sentiment and signs of stabilization in global markets following Trump’s decision to postpone planned strikes on Iranian energy infrastructure by several days.
The delay came after what Trump described as “productive” discussions, temporarily reducing fears of an immediate escalation that could have severely disrupted global supply chains and industrial demand.
Aluminium Supported by Supply Risks
Aluminium prices also remained firm, underpinned by persistent concerns over supply disruptions in the Middle East. The Gulf region accounts for a significant share of global aluminium output, and ongoing conflict has already forced some production cuts and rerouting of shipments.
Even with the delay in military action, traders continued to price in longer-term risks tied to the Strait of Hormuz, a critical shipping route for both energy and industrial metals.
Markets Rebound on De-escalation Hopes
Financial markets broadly rebounded after the announcement, with equities recovering and volatility easing as investors interpreted the delay as a potential step toward de-escalation.
For base metals, the shift in sentiment helped trigger short-term buying, as investors moved back into growth-sensitive commodities like copper, often viewed as a barometer of global economic activity.
Outlook
Despite the rebound, analysts caution that metal markets remain highly sensitive to geopolitical developments. Iran has rejected the U.S. ultimatum and warned of retaliation, keeping the risk of renewed escalation firmly in place.
As a result, copper and aluminium prices are expected to remain volatile in the near term, with traders balancing supply disruption risks against concerns over global economic growth.
