Copper prices advanced sharply, erasing losses that had accumulated since the war in the Middle East began more than six weeks ago. The recovery was driven by renewed optimism around potential peace talks and strong demand from electrification projects worldwide. Traders are now positioning for a potential supply-demand rebalance as industrial activity picks up.

Market sentiment shifted as diplomatic efforts gained traction, with investors betting that geopolitical tensions could ease. The metal's role in renewable energy infrastructure and electric vehicle production has kept demand robust despite broader economic uncertainties. Analysts note that copper's price volatility often reflects global political developments.

This rebound highlights copper's sensitivity to both geopolitical events and industrial demand cycles. With electrification projects accelerating globally, the metal remains a key barometer for economic activity and the energy transition. Traders will watch peace negotiations and infrastructure spending closely for further price signals.