Copper Prices Dip Amid Ceasefire Uncertainty and Stronger Dollar

Copper prices slightly declined on Friday as investors awaited developments regarding a possible ceasefire deal in Iran, alongside a strengthening dollar. Despite recent gains, copper showed signs of stalling. U.S. futures maintained a premium over London Metal Exchange copper, supporting prices amid geopolitical tensions affecting supply routes.

Copper prices edged lower on Friday due to investor anticipation over a potential deal to extend an Iranian ceasefire, alongside a firmer dollar. The London Metal Exchange's three-month copper dropped by 0.3% to $13,655.50 per metric ton, following a 1.3% upswing in the previous session.

This dip comes despite a rebound on Thursday spurred by news of a U.S.-Iran agreement to prolong the ceasefire and permit extra shipping in the Strait of Hormuz. However, the deal awaits President Donald Trump's approval and Iranian media reports suggest finalization is pending.

Commodities strategist Ole Hansen from Saxo Bank noted that recent trends might be stalling, with profit-taking contributing to the downward shift. Simultaneously, U.S. copper futures fell by 0.2%, preserving a premium over LME copper, which supports pricing in the face of global market tightening, further exacerbated by ongoing Gulf region conflicts.