The Iran war triggers concerns about global economic growth, causing copper prices to hit a new low since December last year.

Due to the escalating conflicts in the Middle East pushing up energy prices and increasing the risk of global economic damage, copper prices have fallen to the lowest point since December of last year. After Iran and Israel launched attacks on energy facilities in the Middle East, LME metals have generally fallen. Following Israel's attack on Iran's South Pars natural gas field, Iran then attacked the world's largest liquefied natural gas plant. The latest hostilities have prompted US President Trump to urge all parties to ease the conflict. With no end in sight to the war and oil prices soaring, risk assets including industrial commodities are facing significant selling pressure. Wu Kunjin, head of base metals research at Minmetals Futures Co., said, "This relates to concerns about the economy and inflation. The longer oil prices remain high, the greater the impact on inflation. Rising oil prices do not necessarily mean that interest rates will rise, but that possibility does exist." Copper prices started the year strong, hitting a historic high at the end of January, but have fallen by over 8% this month. As of the time of writing, copper prices have fallen by 1.1% to $12,262 per ton. Metal traders are weighing the possibility of supply disruptions especially in the aluminum market and the threat to global manufacturing activity if the conflict leads to broader economic slowdown. Metal demand was already weak before the US-Israeli attack on Iran. As of the time of writing, aluminum prices have fallen by 0.2% to $3,393 per ton, but have still risen by 13% so far this year. Prices for zinc, nickel, and tin have also decreased. Singapore iron ore prices have risen by 0.3% to $107.60 per ton. However, the sharp drop in metal prices may also help stimulate some buying interest, especially among consumers who were hesitant earlier this year due to high prices. Wu said, "After the price drop, Chinese consumer expectations have improved significantly, which will also help reduce future inventory levels."