LONDON: Copper prices held steady on Tuesday with gains curbed by investor worries about global growth and demand for industrial metals as the war between Israel and Iran raged for a fifth day.

Three-month copper on the London Metal Exchange was little changed at $9,705 per metric ton in official open-outcry trading. Global stocks slid while oil rose as fighting between Israel and Iran sowed fears of a broader regional conflict. Higher oil prices dampen economic growth and stoke inflationary pressures. “Another war has broken out, unsettling investors, raising concerns about long-term global growth, and prompting a shift away from cyclical assets like base metals and move towards safe-haven assets,” said Panmure Liberum analyst Tom Price. The US dollar index slipped, making dollar-priced commodities less expensive for buyers holding other currencies.

Meanwhile, Citi said in a note it expected copper prices to dip to $8,800 in the third quarter if the US imposes tariffs on copper imports. Until then, US copper imports may worsen supply tightness outside the United States, it said. US President Donald Trump in February ordered a probe into possible tariffs on copper imports to rebuild US production.

The probe has resulted in a price premium for COMEX copper futures against LME contracts, which traders and producers have capitalised on by diverting copper supplies from other markets to the United States. US COMEX copper futures traded at a $4.806 lb, bringing the premium over LME copper to around $886 a ton. LME aluminium was up 0.6% to $2,528 a ton, zinc fell 0.7% to $2,640, nickel shed 0.4% to $15,015 and tin edged down 0.5% to $32,450. Lead was down 1.3% at $1,982.—Reuters