Copper prices have declined as investors remain concerned about the global economic outlook and are reacting cautiously to Trump's hints about progress toward a peace agreement with Iran.
Trump announced that he had suspended plans for new military strikes against Iran to allow more time for negotiations with Tehran. He said this move was a response to calls from his Gulf allies.
After a brief rebound, copper futures resumed their decline, following Asian stock markets, as any resolution to the Iranian crisis remains in doubt.
Last Wednesday, copper closed at a new all-time high. This rally was fueled by investor optimism that the metal's demand for AI technologies and clean energy would protect it from economic turmoil. However, since then, prices have come under pressure from concerns about a prolonged blockage of the Strait of Hormuz—a scenario in which rising inflation would force central banks to raise interest rates again.
"The market outlook is currently extremely binary: either the global economy hits a wall, or it doesn't," Guy Wolfe, global head of market research at brokerage Marex, wrote in a research note. "In the former scenario, commodity prices collapse."
Copper fell 0.6% during trading, touching $13,507 per tonne, and was trading at $13,519 as of 10:53 a.m. Shanghai time. Aluminum, zinc, and nickel also declined.
Singapore iron ore prices fell for the fourth consecutive session, posting their longest losing streak in nearly three months, amid concerns about a deteriorating demand outlook in China. Steelmaking raw materials traded around $107 a tonne, the lowest in more than two weeks.