Copper, mining stocks surge as US-Iran deal eases fears

Copper climbed on Monday after the U.S. and Iran confirmed a finalized memorandum of understanding, with the official signing set for June 19.cgtn
BHP Group ↘2.76% shares rose sharply in Sydney, with copper now accounting for over half of the miner’s earnings for the first time.tradingeconomics
The deal calls for reopening the Strait of Hormuz, lifting the U.S. naval blockade, and a 60-day negotiation period on Iran’s nuclear program, according to Reuters.reuters

Copper and Base Metals Rally as US-Iran Peace Deal Lifts Market Sentiment

Copper advanced on Monday after the United States and Iran confirmed a peace agreement to end their months-long conflict, easing fears over global economic disruption and boosting demand prospects for industrial metals. The red metal rose as much as 1.4% on the London Metal Exchange, while BHP Group shares climbed nearly 3.8% in Sydney on the improved outlook.tradingeconomics

Peace Deal Unlocks Risk Appetite

The rally followed confirmation over the weekend that the US-Iran memorandum of understanding had been finalized. President Donald Trump declared on Sunday that the deal was “now complete” and authorized the lifting of the US naval blockade and toll-free reopening of the Strait of Hormuz. Iran’s Supreme National Security Council said on Monday that the agreement would be officially signed on June 19.cgtn

The conflict, which lasted more than 100 days, had rattled energy markets, disrupted shipping routes, and weighed on global growth expectations. Reuters reported that the deal calls for the reopening of the strait, the eventual release of frozen Iranian assets, and negotiations over dismantling Iran’s nuclear program during a 60-day period.aljazeera

Broad Metals Gains

The peace agreement removed a key overhang for commodities tied to industrial activity. Copper traded at approximately $6.51 per pound, up 1.27% from the previous session, according to Trading Economics. Aluminum, zinc, and tin also posted gains across the LME complex, with tin among the strongest performers.tradingeconomics

BHP Group shares rose to A$65.30, gaining 3.77% on the session, as the mining giant’s growing copper exposure amplified its sensitivity to the rally. Copper now accounts for more than half of BHP’s group earnings after surpassing iron ore contributions for the first time in the first half of fiscal 2026.fool

Structural Tailwinds Persist

The peace-driven bounce adds to copper’s broader advance in 2026, with the metal up roughly 36% year-over-year, supported by electrification demand, AI-related infrastructure investment, and tight mine supply. Goldman Sachs has noted copper prices remain above fundamental fair value of around $11,500 per ton but expects support near $13,000 in the near term. Analysts have cautioned that proposed US copper tariffs, scheduled for a formal decision in the second half of 2026, could further reshape the market’s trajectory.goldmansachs