Copper Extends Gains for a Second Session

Copper futures rose above $6 per pound on Wednesday, advancing for a second straight session as improving sentiment around a potential US-Iran agreement supported broader gains across the metals complex. The US reaffirmed its ceasefire with Iran, confirmed that offensive operations have ended, and temporarily paused efforts to assist stranded vessels exiting the Strait of Hormuz to allow time for renewed negotiations. Oil prices fell sharply, easing inflation concerns and reducing expectations that central banks may need to raise interest rates. Copper was also supported by supply-side risks, as disruptions linked to the Middle East conflict affected sulfur flows to China, prompting Beijing to restrict exports of sulphuric acid, an input crucial to nearly half of Chile’s copper refining capacity. On the demand side, continued investment by major technology companies in large-scale data center buildouts is reinforcing longer-term demand expectations for copper.