Copper price retreats as traders weigh prospects of US-Iran peace deal

Bloomberg News | May 21, 2026 | 7:19 am Markets USA Copper

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Copper fell as traders waited to see whether a fragile ceasefire in the Middle East can turn into a peace deal.

Industrial metals fluctuated on Thursday, with copper slipping as much as 1.3%. Iran said the latest proposal from the US has partly bridged the gap between the warring sides, but gave no indication of when it would formally respond.

US President Donald Trump said on Wednesday that the US was in the “final stages” with Iranian diplomacy, though he also warned that he may resume attacks in the coming days if no agreement is reached. Iran’s supreme leader said that the country’s near-weapons-grade uranium shouldn’t be sent abroad, Reuters reported, citing two senior Iranian people familiar with the matter.

The war has dented the outlook for global growth and spurred central banks to consider raising interest rates, a negative for industrial metals. The rapidly fluctuating outlook for the conflict has buffeted prices, with copper closing at a record high last week on optimism for an end to hostilities, as well as enthusiasm for commodities linked to the growth of artificial intelligence, clean energy and strategic stockpiles.

Copper price hits record in US on supply risks, tariff bets

A more modest tone in US equity markets contrasted with buoyant optimism in Asia, where a key tech gauge jumped. Copper has become more sensitive to swings in tech-stock valuations and market sentiment about AI, as some investors view owning the metal as a way to bet on the sector.

Copper declined 1.2% to $13,488.50 a ton by 11:40 a.m. local time on the London Metal Exchange. Aluminum gained 0.9%, while zinc and nickel edged lower.

Iron ore fell 1.3% to $105.85 a ton in Singapore, down for a sixth day to mark its longest losing streak since February. The steelmaking ingredient may move lower in the near term as global seaborne shipments rise, while Chinese steel sales slow heading into the summer lull, Chaos Ternary Futures Co. said in a note.