Copper and Aluminum Prices Drop Amid Middle East Tensions

According to Jin10, copper and other industrial metal prices have declined following threats from U.S. President Donald Trump to target Iranian infrastructure if negotiations fail. The metal market has been volatile due to potential disruptions in Middle Eastern supply and concerns that an oil shock could severely impact the global economy and suppress demand. Copper prices recorded their largest monthly decline since 2022 in March. Meanwhile, aluminum prices reached a four-year high on Wednesday after Emirates Global Aluminium, the largest aluminum producer in the Middle East, reported that missile and drone attacks from Iran forced the shutdown of one of its smelters. Kelvin Wong, a senior analyst at Oanda, stated that if global central banks begin to reverse their liquidity easing cycles, base metals, including copper, could face demand destruction threats. He emphasized that oil prices remain a key market driver, and as long as the shipping situation in the Strait of Hormuz remains uncertain, the upward trend in oil prices is unlikely to change.