Copper hits one-week high after US-Iran deal

Copper rose to a more than one-week high on Monday, as a U.S.-Iran framework agreement to end their war and reopen the Strait of Hormuz eased energy-driven inflation fears and weakened the U.S. dollar. The benchmark three-month copper on the London Metal Exchange rose 0.72% to $13,796.50 a metric ton as of 0705 GMT. It earlier rose 1.43% to $13,893.50, the highest level since June 5. The most-traded copper contract on the Shanghai Futures Exchange climbed 1.27% to close at 105,590 yuan ($15,625.14) a ton, after briefly hitting 106,000 yuan, also the highest since June 5. U.S. and Iranian officials said on Sunday the framework would end the U.S. blockade of Iranian ports and reopen the Strait of Hormuz, a key route for global oil and gas supplies. Brent futures tumbled more than 4%, while the dollar hit a 10-day low that made greenback-priced metals cheaper for investors using other currencies. Chinese broker Jinrui Futures said the agreement marked the biggest progress in months of U.S.-Iran negotiations and could ease geopolitical pressure on markets, though they noted developments still need to be watched. In the U.S., Federal Reserve's Kevin Warsh will chair his first policy meeting this week. The central bank is widely expected to leave rates unchanged, but traders will focus on the policy statement, Warsh’s press conference and updated rate projections for signs of how much concern officials have about persistent inflation. U.S. consumer sentiment improved in early June as gasoline prices eased from recent highs, but inflation expectations remained elevated. Elsewhere on the LME, aluminium shed 0.86%, zinc rose 0.27%, lead gained 0.48%, nickel advanced 0.59% and tin surged 2.83%. Among other base metals on SHFE, aluminium was unchanged, zinc climbed 2.33%, lead rose 1.03%, nickel grew 1.52%, and tin surged 4.74%.