Copper climbed and aluminum was on track for its highest close in four years as investors priced cautious optimism that the United States and Iran could seal a peace deal, even after a fresh flare‑up of hostilities in the Persian Gulf. The surge also narrowed the yield gap with gold, drawing capital. The move lifted broader base‑metal indices, signaling a shift from earlier risk aversion.

Base‑metal prices react sharply to geopolitical cues because they feed into construction and manufacturing supply chains. A durable peace between Washington and Tehran would ease sanctions, lower insurance premiums on shipping routes, and revive demand for raw materials. Traders therefore interpreted the latest diplomatic overture as a catalyst, keeping the rally intact despite the Gulf skirmish. The optimism also lifted sentiment in Asian metal exchanges.

The rally gives metal producers a short‑term pricing edge and may influence contract negotiations for downstream users. Market participants will watch for any change in U.S. diplomatic language or renewed Gulf tensions that could reverse the gain. Investors will also monitor inventory builds in major warehouses. For now, the price action underscores how quickly commodities can rebound on a hint of geopolitical stability.