Copper price analysis: US-Iran war as a major bullish catalyst

The US-Iran war, which has been on for over six weeks now, has have a major impact on precious and industrial metals alike. For instance, the fundamentals of the copper market are still bullish. However, conflict-driven concerns on the health of the global economy have fueled volatility.

As headline news continue to impact the market, hints at a second round of peace talks are supporting Dr Copper. Besides, the energy shock which the EIA termed the largest oil disruption in history is set to act as an incentive for heightened electrification. 

At the time of writing, Comex copper futures were at $6.08 per pound. This is after pulling back from the two-and-a-half month high hit earlier in the day at $6.14. In London, copper price rose to its highest level since 27th February; a day before the US and Israeli forces attacked Iran.

Geopolitical conflicts set to catapult copper price to fresh highs

Copper price has rallied consistently for a week now to erase the losses sustained since the US-Iran war began over six weeks ago. In addition to its bullish demand/sypply dynamics, optimism over an agreement between the US and Iran has improved the market sentiment. 

When the conflict erupted in late February, Dr Copper was impacted by heightened concerns over the health of the global economy. Fast forward, the two-week ceasefire announced last week bolstered the red metal back above the bullish channel that shaped its price movements since mid-2025. The risk appetite has been improved further by news that Washington and Tehran are considering a second round of peace talks. 

Besides, the conflict-driven energy shock will now be a major incentive for the copper market. Now more than ever, the world will strive to replace its crude oil dependency through electrification. As such, the market trends that boosted copper price to an all-time high in late January just got supercharged.  

Notably, optimism over the US-Iran peace talks have bolstered other precious and industrial metals. Earlier on Wednesday, gold and silver prices rallied to levels last recorded four weeks ago. 

Comex copper price technical analysis

Copper price rallied to a two-and-a-half-month high earlier on Wednesday before pulling back. The red metal has recorded steady gains for about a week; surging past $6 a pound on Monday for the first time since the onset of the US-Iran war on 2nd March. However, it has lacked enough momentum to break the months-long resistance zone of $6.15. 

A look at its daily trading chart signals that Comex copper price may continue facing resistance along $6.15 as the markets track the ongoing US-Iran war and its impact on the global economic health. However, the bearish death cross pattern that has been in place for the past three weeks appears to be reversing. Besides, the recent gains place the asset back into the bullish channel that has shaped its movements for close to a year. 

Based on these technical indicators, the range between $6.15 and $5.96 will be worth watching in the short term. Below that range, $5.85 will likely hold steady as the red metal remains within the months-long bullish channel. On the upside, further rallying places the next target at $6.20 as bulls eye the all-time high hit earlier in the year at $6.58.