Industrial metals retreated from record highs on Tuesday as escalating hostilities in the Middle East underscored lingering headwinds. The London Metal Exchange's all-in index of six base metals hit a record peak, driven by copper soaring to fresh highs and aluminum extending gains. Zinc breached the $4,000 a ton threshold for the first time since 2022.

Supply-side issues have played a significant part in the advance, but the Iran war remains a risk for prices by threatening global growth. Markets are closely monitoring the situation as tensions flare, impacting commodity prices worldwide.