Copper prices edged higher on Monday as oil markets retreated, driven by a pause in hostilities between the United States and Iran that eased fears over inflation and global economic growth. The shift in sentiment comes after 13 nights of intensified U.S. airstrikes on Iran, followed by a Pentagon suspension of the campaign on Friday. Iran, which had retaliated with strikes on countries hosting U.S. bases, has held fire for two days, raising hopes of a diplomatic resolution. Main Developments Benchmark copper on the London Metal Exchange rose 0.32% to $13,688.5 a metric ton at 0700 GMT. The pause in fighting sent oil prices tumbling, as traders bet on a resumption of shipping through the Strait of Hormuz. "The market is now waiting for some sort of resolution and it is trying to price in peace rather than an ongoing war," said Panmure Liberum analyst Tom Price. Read also: Pakistan's housing fix: How the Apna Ghar loan works Meanwhile, unusual storms in Chile have disrupted the power distribution grid, raising questions about copper production guidance across the industry. Chile accounted for 23% of global mined copper output last year—5.3 million tons—according to the U.S. Geological Survey. Background Traders are also watching LME copper stocks, which have dropped 30% since the end of May to 272,975 tons. Since February last year, producers and traders have been shipping copper to the United States ahead of potential import tariffs threatened by President Donald Trump, creating a premium for U.S. copper over LME prices. The U.S. Commerce Department was due to complete a market review by June 30, but Trump has not yet announced a tariff decision. Why It Matters The combination of easing geopolitical tensions and supply-side pressures—from Chilean weather disruptions to falling LME inventories—creates a complex outlook for copper. Lower oil prices reduce input costs for miners and manufacturers, while potential U.S. tariffs could further distort global trade flows. The metal's price trajectory will signal broader investor confidence in economic recovery and industrial demand. What's Next Markets will await clarity on U.S. tariff policy and the outcome of diplomatic talks between Washington and Tehran. If the ceasefire holds, shipping through the Strait of Hormuz may normalize, keeping oil prices subdued. However, Chile's production disruptions and declining LME stocks could sustain upward pressure on copper prices in the near term.