The Sino-Iranian agreement boosts the prospects for metal demand, prompting copper prices to rise.

The peace agreement reached between the United States and Iran has eased concerns about global economic growth and boosted optimism for metal demand, leading to an increase in copper prices. After the US and Iran announced the agreement to end hostilities, reopen the Strait of Hormuz, and initiate negotiations on the Iranian nuclear program, copper prices rose by 1.4%. For metals, especially copper, the end of the war will eliminate major downside risks, and analysts currently hold a relatively optimistic view of the metal market. Despite ongoing conflicts in the Middle East, metal prices have performed relatively well. Since the large-scale attacks by the US and Israel on Iran at the end of February, copper prices have risen by about 4%, and after disruptions in the aluminum supply route in the Persian Gulf and damage to smelters, aluminum prices have also risen by 13%. The rise in copper prices is mainly driven by optimism about demand for artificial intelligence and clean energy, as well as expectations of potential US import tariffs. JPMorgan last week raised its forecast for copper prices, but also warned that there may be fluctuations in copper prices in the short term before the White House announces its decision on copper tariffs. JPMorgan has given the highest copper price forecast on Wall Street, predicting that the London Metal Exchange (LME) copper price will peak at $8 per pound between 2030 and 2031, equivalent to $17,600 per ton, up from a previous forecast of $6 per pound. The bank also predicts that copper prices will rise to $6.50 per pound by 2027. The upward revision in copper price forecasts reflects expected demand growth from US data center construction and power infrastructure development. In addition, Goldman Sachs has also raised its LME copper price forecast, with other banks such as JPMorgan and HSBC also bullish on copper prices. As of the time of writing, LME copper prices have risen by 1.2% to $13,864 per ton, aluminum prices have risen by 0.3%, and zinc prices have risen by 0.7%. Tin prices have surged by over 3%, with the metal price reaching near historical highs earlier this month before retreating.