This post was originally published on The Economic Times
Copper fell more than 2% in London amid steep losses in stocks, bonds and currencies as the widening war in Iran reverberates through global markets.
All base metals headed lower on the London Metal Exchange as European trading got underway, with regional equity markets opening more than 2% lower and the dollar extending its surge. Gas prices spiked more than 30% and oil extended gains, fueling growing worries that the war will unleash a bout of inflation that will weigh heavily on consumers and factories.
Iran has stepped up its response to US-Israeli attacks by targeting US allies, and President Donald Trump has said there is no fixed timeline for his military action. The State Department urged Americans to leave countries across the Middle East, citing “serious safety risks” amid dangers from the war.
Aluminum fell as much as 1.3%, after initially surging in the aftermath of the escalation of the Iran crisis, as traders focused on potential supply dislocations or production cuts in a region responsible for about 9% of global output. Orders to withdraw aluminum from warehouses tracked by the more than doubled to 43,325 tons on Tuesday, adding to signs of supply stress in regional markets that depend on
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