Copper prices dropped to their lowest level in three weeks on Thursday as escalating US-Iran military exchanges in the Middle East sparked fresh concerns about global economic stability. The industrial metal, often viewed as a barometer for economic health, declined amid fears that renewed conflict could disrupt supply chains and energy markets.

The flareup comes at a sensitive time for commodities, with investors already worried about stubborn inflation and potential central bank tightening. Rising energy prices typically feed through to production costs across manufacturing sectors, putting additional pressure on economies still recovering from pandemic-related disruptions.

Industrial metals like copper are particularly vulnerable to geopolitical shocks because they reflect expectations for construction, manufacturing and infrastructure spending. When investors anticipate slower economic growth, demand forecasts for copper typically fall, pressuring prices lower.

Thursday's decline signals that commodity markets remain on edge as the US-Iran situation develops. The three-week low underscores how quickly geopolitical events can translate into trading action across asset classes, with copper serving as an early warning system for broader economic concerns.