Copper rises as Trump's two-week Hormuz 'truce' allays some risk sentiment

After Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week peace agreement with the US and Israel, copper prices increased.

On the London Metal Exchange, the industrial metal saw a 2.9% increase. Early trading also benefited aluminium, the base metal most impacted by supply issues throughout the conflict.

Investor worries about inflation and global industrial slowdown, which have clouded the demand picture for metals since the war started more than a month ago, will be allayed by the temporary ceasefire in exchange for reopening Hormuz.

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The Persian Gulf produces about 10% of the world's aluminium, and exports are limited by the strait's impending closure. Additionally, Aluminium Bahrain BSC and Emirates Global Aluminium PJSC activities have been hit by Iranian drones and missiles.

At 9:13 a.m. in Shanghai, copper on the LME increased 2.8% to $12,653 a tonne, while aluminium increased 0.5% to $3,492.50 per tonne. On the trade, other base metals also benefited.