Copper futures in the US fell to below $5.75 per pound on Tuesday, tracking pressure for base metals after a one-month high of $6 on February 27th as the war in Iran triggered a surge for the US dollar and developed risks to global manufacturing demand.

Iran and US allies continued to exchange strikes that followed from the weekend, with Iranian forces striking key energy infrastructure in the Middle East and threatening to attack any vessel or tanker crossing the Strait of Hormuz chokepoint.

The developments triggered surges in global energy prices, raising the dollar due to a likely hawkish response from the Federal Reserve in addition to a pivot towards safety.

The surging energy costs also risk a pullback in manufacturing that hurts base metal demand.

Still, prices remained relatively close to their record high of $6.2 touched in the end of January as bullish speculative demand coincides with tight supply.
Signals of incoming stimulus from the Chinese government also aided demand.
Source: Trading Economics