Three-month copper futures on the London Metal Exchange (LME) have declined by 2.45%, dropping to $13,637 per metric ton. This follows a previous session close of $13,985 per ton, which represented a $110 decrease. Market analysts attribute this downward trend to surging energy prices, which have reignited inflation fears in the United States. Recent reports suggest that these elevated energy costs could ripple through the broader economy, significantly dampening investor expectations for any imminent interest rate cuts and reducing the appeal of US Treasury bonds.
On the geopolitical front, the spotlight is on the high-level US-China summit in Beijing. President Donald Trump shared with Fox News that President Xi Jinping has offered assistance in ending the ongoing war with Iran, pledging to halt any weapons shipments to the country. US Treasury Secretary Scott Bessent, who accompanied Trump on the trip, stated that China will make active efforts to reopen the Iran-blocked Strait of Hormuz. Both leaders share a firm and unified stance against Iran acquiring nuclear weapons, with Trump issuing a stark warning that his patience with Tehran is rapidly running out.
