Copper ticks down as fresh US strikes on Iran weigh on sentiment

Copper prices edged lower on Tuesday, pressured by higher oil prices after the latest U.S. strikes on Iran dampened hopes of a resolution to the Middle East conflict, driving concerns over the global economic outlook. Three-month copper on the London Metal Exchange was down 0.2% at $13,637.50 a metric ton by 0746 GMT. The most-traded copper contract on the Shanghai Futures Exchange slipped 0.4% to 104,960 yuan ($15,447.22) a ton. U.S. Secretary of State Marco Rubio said on Tuesday negotiating a deal with Iran could "take a few days," quashing hopes for an imminent end to the conflict a day after U.S. forces conducted what Washington called defensive strikes in southern Iran. The strikes came as Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the U.S. to end the three-month-old war. Brent crude oil prices rose after the U.S. military action. Higher energy prices have dimmed the outlook for metals due to the risk that an energy shock could squeeze global growth and manufacturing. "Base metals are likely to remain range-bound and sensitive to headlines in the near term," said Tim Waterer, chief market analyst at KCM Trade. "Should a peace deal emerge that meaningfully lowers oil and drags the dollar lower with it, that would ease inflation concerns and significantly boost the attractiveness of base metals." Elsewhere on the LME, aluminium gained 0.8% to a more-than-one-week high, zinc rose 1.4%, lead was up 0.4%, nickel lost 1.3% and tin climbed 0.1%. Among other SHFE metals, aluminium ticked 0.5% higher, zinc was up 1.2%, lead held steady, nickel lost 1.2% and tin added 0.7%.