LME copper prices fall as escalating US-Iran war renews inflation risks, interest rate hike fears

Copper prices traded lower on Monday amid the escalation of the US-Iran war in the Middle East, with Tehran once again closing the vital energy corridor of the Strait of Hormuz.

London Metal Exchange (LME) benchmark three-month copper declined 0.64% to $13,398.5 a metric ton. The most-traded copper contract on the Shanghai Futures Exchange fell 0.68% to 103,100 yuan ($15,199.54) a ton.

In the domestic market, copper prices on the Multi Commodity Exchange (MCX) for July futures contracts traded 0.06% higher at ₹1,294.35 per kg. During the session, MCX copper prices slipped as much as 0.75% to an intraday low of ₹1,283.80 level.

Copper prices declined amid a broad-based sell-off across global commodity markets following the renewed escalation of the US-Iran war in West Asia. The two countries exchanged heavy missile and drone strikes over the weekend, triggering a risk-off sentiment among investors.

The heightened geopolitical tensions pushed energy prices higher, with Brent crude rising 2.79% to $78.13 per barrel. The surge in crude oil prices has revived concerns that elevated energy costs could fuel inflation, prompting central banks to keep interest rates higher for longer.

A prolonged high-interest-rate environment typically dampens economic activity and industrial demand, weighing on base metals such as copper.

Meanwhile, gold and silver prices also came under pressure as the US dollar strengthened modestly over the weekend. A firmer greenback makes dollar-denominated commodities, including copper, more expensive for holders of other currencies, reducing demand and exerting downward pressure on prices.

In other commodities, LME aluminium prices fell by 0.33% and declined on the SHFE by 0.65%. zinc prices declined 0.88%, lead price slipped 0.98%, nickel shed 1.29% and tin dipped 0.23%.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.

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