Copper falls after Trump threatens more attacks on Iran

Copper prices fell for the first time in five sessions on Thursday, weighed down by renewed concerns over economic growth after U.S. President Donald Trump vowed more strikes on Iran and gave no specific timeline on ending the conflict. The benchmark three-month copper on the London Metal Exchange fell 1.06% to $12,305 a metric ton, as of 0708 GMT. The most-active copper contract on the Shanghai Futures Exchange closed down 0.68% at 95,880 yuan ($13,921.28) a ton. Global stocks fell, the dollar firmed, and oil jumped after Trump said Washington's "core strategic objectives" in the Iran war were nearing completion but stopped short of providing a clear outline of when the conflict would end. "Copper is currently trading more like a macro-sensitive risk asset, moving in line with equities, as sentiment weakens around the macro outlook and geopolitical uncertainty persists," said Alexandre Claude, CEO of DBX Commodities. Crude oil prices climbed over 5% to above $100 after Trump's announcement, stoking fears of demand destruction as smelters reduce run rates due to power rationing, Claude added. Commodity markets have started pricing in inflation, interest rate hikes and the potential for a recession, said Ian Hiscock, director at Metal Market Consultants. "In a risk-off environment, capital moves to safer assets, strengthening the dollar and blunting commodity market price rises," Hiscock added. Among other metals on the LME, aluminium fell 0.85%, zinc slipped 1.49%, lead retreated 0.9%, nickel shed 0.98% and tin softened 3.44%. Major Chinese copper smelters are planning to raise or maintain output in 2026, their earnings outlooks show, despite a public commitment by the state-linked industry association last year to cut production by over 10%. China's aluminium exports are also expectedto rise sharply, as the Iran war tightens global supply and boosts margins. On the SHFE, aluminium retreated 0.52%, zinc edged up 0.02%%, lead rose 0.6%, nickel nudged 0.98% lower and tin lost 3.05%.