(Aug 6): Copper futures on New York’s Comex traded just short of an all-time high as investors awaited a decision on US tariffs, while also tracking a push to reopen the Strait of Hormuz that lifted demand for risk assets.

The metal has gained about 17% on Comex this year — stretching its premium over London Metal Exchange (LME) prices — as traders position for any announcements on import levies. The higher US rates have kept large volumes flowing to American ports, tightening the market elsewhere.

“The US basically got all the world’s supply of copper sitting in its back door,” said Jeff Currie, a senior adviser to Carlyle Group and former Goldman Sachs commodities chief. 

In the Middle East, fears over escalation in the US-Iran war have given way to hopes for an agreement to reopen the strait. President Donald Trump told reporters in Los Angeles that negotiations with Tehran were going well. Along with copper, zinc and aluminium edged higher as the US dollar fell.

Most commodities including base metals stand to benefit from steps towards resolving the conflict that’s rocked global markets this year. The fresh bout of optimism has softened inflation concerns and spurred traders to rein in bets on Federal Reserve interest rate hikes over the rest of 2026. That’s positive for industrial materials that are keyed to expectations for global growth.

On Comex, copper was up 0.9% at US$6.7045 (RM27.45) a pound at 11.54am, nearing the record set in May.  

On the LME, copper was up 0.2% to US$14,098 a tonne after surging on Tuesday to the highest close since May. Other LME metals were mixed, with zinc up 1.3% and nickel down 0.4%. 

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