Copper price rises to six-week high as Iran talks hope aids metals

Copper rose to the highest level in more than a month as most industrial metals rallied on optimism that the US and Iran will restart peace talks.

The US and Iran are looking to arrange a second round of peace talks in the coming days, with Tehran mulling a pause in shipments through the Strait of Hormuz to help ease the path toward an agreement on time and place. The objective is to hold more discussions before an April 7 ceasefire expires next week, according to people familiar with the matter.

Industrial metals have been whipsawed since the Middle East war erupted at the end of February. They were initially hit by fears of soaring energy costs and the impact on economic growth before partially recovering on signs the conflict may be nearing an end. Aluminum jumped to a four-year high Monday on the further disruption to supplies due to the US blockade, but prices fell 1.2% on Tuesday as hopes for a resolution rose.

“Investors are pricing in the easing of macro crisis,” said Jia Zheng, trading manager at Suzhou Chuangyuan Harmony-Win Capital Management Co. “It is likely to be a prolonged tug-of-war, similar to the Russia-Ukraine war, where the impact on the markets will gradually weaken.”

Copper rose 1.8% to settle at $13,284.50 a ton on the London Metal Exchange. Aluminum was down 1.2% at $3,563 a ton, as all other base metals rose on the bourse.

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