Copper dropped below $5.4 per pound on Tuesday, trimming gains from the previous session as hopes for a de-escalation in the Middle East conflict faded after Iran denied holding talks with the US to end the standoff. Tehran dismissed President Donald Trump’s announcement as an attempt to manipulate financial markets and launched new attacks on US targets, while Israel continued strikes against Iran. On Monday, copper had rebounded nearly 2% after Trump postponed planned US strikes on Iranian energy infrastructure, claiming negotiations were underway. The outcome of any talks and the potential reopening of the Strait of Hormuz remain highly uncertain, keeping traders cautious. Additionally, robust inventories at global exchanges continued to weigh on prices, with LME stockpiles near six-year highs and HFE inventories close to record levels.
