Copper led a rally among base metals on Tuesday as traders priced in growing optimism that Washington and Tehran could seal a peace talks agreement. The metal rose about 1.2% to $4.30 per pound, pulling lagging peers such as aluminum and zinc higher. The rally also boosted metal ETFs.

Investors in risk‑on assets responded quickly, with equity indices climbing and the dollar slipping against a basket of currencies. Commodity funds added net long positions, betting that a de‑escalation in the Middle East will sustain demand for industrial metals used in construction and manufacturing. Investors also eyed energy stocks.

Analysts caution that any setback in the talks could reverse the metal bounce, but the current trajectory underscores how diplomatic developments shape commodity pricing. Traders will watch the next round of negotiations for clues on whether the optimism can translate into tangible policy shifts, a factor that could keep copper and its peers on an upward trend. Overall, the market remains sensitive.