Why did industrial metals fall on the London Metal Exchange despite having just hit a record high?

Industrial metals fell because escalating Middle East tensions—specifically the US military's destruction of five Iranian tankers after an attempted strike on a US Navy warship—fueled concerns about global growth and inflation, prompting macroeconomic caution; as Guangzhou Futures Co. noted, uncertainty around US inflation and shifting Federal Reserve policy expectations created downward pressure on prices, particularly copper, which dropped 0.6% to $14,625 a ton.

What supply-side factors contributed to the recent surge in the LME’s all-in index of base metals?

The LMEX Index surged over 40% year-on-year due to multiple supply-side constraints: copper supplies tightened as hundreds of thousands of tons were diverted to the US ahead of anticipated import tariffs, leaving the LME market underserved; zinc faced significant pressure from constrained ore supply; and aluminum flows from the Middle East were crimped by the Iran war.

Metals Fall From Record High in London as Middle East Tensions Flare

Sep 8, 2026

Industrial metals retreated from record highs on the London Metal Exchange amid escalating Middle East tensions and macroeconomic uncertainty. Previously driven by supply constraints, prices fell as concerns over global growth and US inflation impacted copper and other base metals.

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Metals Fall From Record High in London as Middle East Tensions Flare

Metals Fall From Record High in London as Middle East Tensions Flare

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