Trump says Iran ceasefire agreement "hangs by a thread" and copper prices maintain historical highs despite ignoring the turbulent waves of the Strait of Hormuz.

US President Donald Trump has rejected Iran's proposal for a peace agreement, stating that the ceasefire agreement with Iran is in a "hanging by a thread" state. As a result, copper prices have stabilized near their historic high closing price. Trump's latest statement highlights the stalemate in the Middle East conflict, which has posed a widespread threat to the global economy for the tenth consecutive week. Despite this, metal prices have shown strong gains over the past month, with a significant increase on Monday followed by a market correction. The metal market overall remains calm in the face of the increased uncertainty in the Strait of Hormuz caused by the blockade implemented by Iran and the US, cutting off oil and gas transportation and raising global energy costs. Strong demand from China provides support. Analysts from Citigroup and Jefferies believe that copper prices will show relative resilience. Sam Crittenden, an analyst at RBC Capital Markets in Canada, stated in an email report, "The willingness of China to accept higher prices remains a key issue, recent data shows strong fundamental demand." London copper futures hit a new record high on May 11. Copper prices rose by 2.7% to $13,943 per ton, setting a new record closing price, surpassing the previous high of $13,618 set on January 29. Aluminum prices fell by 0.7%, while zinc prices, which had previously closed at a three-year high, remained stable. As of the time of writing, copper prices remained around $13,850 per ton, having previously dropped by 0.8%. The rise in copper, zinc, and silver on Monday was partly due to market speculation about the sudden supply situation of fuel in major mining center Peru. The Lima government has announced a $2 billion plan to support the state-owned oil refining company PetroPeru, but there has been widespread discussion in China about the risks facing mining companies that rely on diesel supply. Zijie Wu, an analyst at Jinrui Futures Co., said, "The news about PetroPeru is just a financial arrangement and has not yet had a real impact on the mines. The problem in Peru is not a lack of access to oil, but a lack of money to purchase oil. With the development of the Middle East crisis, concerns about the supply side may still arise." Peru is a major silver-producing country. The spot silver price rose by 7% on Monday, closing at $86.057 per ounce. A recent report from Citigroup on May 12 lists copper as the preferred material in the Chinese materials industry, with analysts pointing out that the sector's performance has not fully reflected the strong trend in metal prices, and they expect mining stocks to follow the commodity price increases. Once the Strait of Hormuz reopens, copper prices may even accelerate upwards. Goldman Sachs also emphasized that simultaneous purchases of LME copper by China and the US in May and June will drive further tightening of stocks and price strengthening.