Updated
Updated · Bloomberg · Jul 13
Base Metals Retreat as US-Iran Flare-Up Clouds Industrial Demand Outlook
Updated
Updated · Bloomberg · Jul 13

Base Metals Retreat as US-Iran Flare-Up Clouds Industrial Demand Outlook

3 articles · Updated · Bloomberg · Jul 13

Summary

  • Base metals fell after renewed US-Iran hostilities darkened the outlook for global growth and demand for industrial commodities.
  • Higher energy costs and the risk of prolonged Persian Gulf supply disruptions are driving the selloff, with investors worried that fresh inflation pressure could trigger further interest-rate hikes.
  • US inflation data due this week is now a key near-term test, as traders look for clues on the Federal Reserve's policy path and its impact on metals demand.

Insights

With conflicting reports on base metals, is the market facing a demand collapse or a supply crunch?
Can central banks curb soaring inflation from the energy shock without causing a global recession?
How will the largest energy supply disruption ever recorded permanently alter global supply chains?