The tension between the US and Iran has fluctuated repeatedly, and copper prices are now falling from their two-month high.

Against the backdrop of uncertainty caused by the seizure of an Iranian vessel in the Strait of Hormuz by the United States, leading to the halt in ceasefire negotiations between Washington and Tehran, the price of copper is falling from its closing highs since early February this year. After four weeks of increase, the metal price dropped by about 1.1% in early Asian trading, while zinc and lead prices also saw declines. Data shows that oil prices surged on Monday partially offsetting the significant drop last week while most metal prices fell as concerns over the global economy once again impacting trade. A major risk faced by metal assets is the potential long-term closure of the strait, which could exacerbate the energy shock already affecting the global economy. This situation could force central banks to take a tougher policy stance, impacting global manufacturing and damaging demand for industrial commodities.