Copper prices edged lower on Wednesday as iron ore extended its losing streak to a fifth consecutive session. Traders are growing increasingly nervous that global central banks will adopt a hawkish stance to contain inflation stemming from the escalating conflict in the Middle East.

That bearish mood reflects deepening concern that the war's disruption to energy markets will fan price pressures worldwide. Tighter monetary policy would then choke off economic growth and curb demand for industrial raw materials like metals.

For investors, the selloff shows how supply disruptions from the conflict are colliding with the demand destruction from higher borrowing costs. Commodities that are sensitive to interest rate expectations, such as copper and iron ore, are taking the hardest hits.

The risk-off tone across commodity markets suggests traders are betting that central banks will prioritize fighting inflation over supporting growth in the near term, putting further pressure on industrial metals.