Copper futures reached approximately $6.40 per pound on Monday. This price represents a one-week high for the metal. Gains followed growing optimism for a peace agreement between the United States and Iran. A successful deal would likely reopen the strategically important Strait of Hormuz.
The development eased global concerns regarding inflation and interest rate hikes. These factors weakened the US dollar, making copper more affordable for international buyers. Bullish sentiment overshadowed a reported weekly increase in Chinese copper inventories.
The most-traded June BC copper contract on the Shanghai International Energy Exchange closed up 0.68%. Shanghai Metals Market noted that officials anticipate further negotiations regarding the deal around June 5.