It’s copper’s day out on Monday as the metal is among the top-performing assets in the commodity markets. Its price spiked nearly 25 points during today’s trading session with an uptick of nearly 2.4%. The prices are now inching towards the $10,000 mark after touching a day’s high of $9,942.
Commodity investors made hefty profits on Monday as copper, gold, silver, oil, and the US dollar spiked in value. However, the broader Asian stock markets remained in the red due to the ongoing conflict between Iran-US-Israel. Brent and Crude oil prices which remained bearish this year have seen a sharp spike.
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The Outlook for Copper Prices in 2025
While tariffs and trade wars dimmed the lights on copper, the tensions in the Middle East have lit up its prospects. Copper components play a role in weapons and ammunition manufacturing due to their durability and strength as the alloy resists corrosion. The weapons lobby is at hard work lately pressurizing the White House to launch offensive strikes against Iran.
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This brings back the demand for copper due to its properties which suit the artillery components required for warfare. The prices of the metal could shoot above the $10,000 mark if the tensions do not cool down this month. Even copper stocks such as BHP Group, Freeport-McMoRan, Teck Resources, Southern Copper, and Rio Tinto are expected to gain.
Taking an entry position into copper stocks could prove beneficial if the offensive stance by the US escalates further. However, things could go downhill if Iran stops the flow of trade at the Strait of Hormuz as a counterattack to the US. The safety net of all global trade and finances could be exposed if the Islamic Republic takes such a measure. Even the US stock market would be under tremendous pressure if the Strait of Hormuz is blocked is Iran.
