Copper gains as US-Iran peace deal hopes weigh on dollar, oil

CA1! +1.17% HG1! +1.10% DXY −0.33% AH1! +0.41% Copper prices rose on Monday as the dollar and oil fell on hopes of a potential peace deal between the United States and Iran, easing fears of inflation and a global economic slowdown. Three-month copper on the London Metal Exchange CA1! rose 0.90% to $13,635 a metric ton by 0845 GMT. The most-traded copper contract HG1! on the Shanghai Futures Exchange gained 1.1% to 105,650 yuan ($15,548.76) a ton. "We are getting some positive news on the conflict side. So that's supporting the market sentiment for industrial metals," said ANZ analyst Soni Kumari. "Base metals are stuck between the short-term demand headwind because of slowing economic growth and the support from supply disruptions" due to the Middle East conflict, said Kumari, adding that the demand story for metals remained supportive. Expectations of a U.S.-Iran deal to reopen the Strait of Hormuz pushed oil prices below $100 per barrel. Energy prices have risen sharply during the nearly three-month-long war in the Middle East, stoking inflation concerns and shifting the global interest rate outlook. However, hopes of a peace deal have eased concerns about inflation and a global slowdown, supporting demand for copper, widely considered a bellwether of the global economy's health.