SAND555/iStock via Getty Images Due to the broadening conflict in the Middle East, the closure of the Strait of Hormuz on Feb. 28 led to increased maritime risks for oil and energy markets. With over 25% of global seaborne oil and about 20% of global LNG trade passing through the strait, this stalled trade route furthers cost-push inflation given supply and logistical uncertainties. In this articl...
SAND555/iStock via Getty Images Due to the broadening conflict in the Middle East, the closure of the Strait of Hormuz on Feb. 28 led to increased maritime risks for oil and energy markets. With over 25% of global seaborne oil and about 20% of global LNG trade passing through the strait, this stalled trade route furthers cost-push inflation given supply and logistical uncertainties. In this article, we highlight the closure's impacts to the copper and nickel markets, with the latter becoming increasingly susceptible to supply-side shocks. Copper prices tempered by US dollar The escalation of the US-Iran conflict is expected to have a limited effect on global copper supply. Although Iran is the Middle East's main copper producer, its output - about 360,000 metric tons of mined copper and 340,000 mt of refined copper in 2025 - represents just 1.5% and 1.2% of global production, respectively. In 2025, Iran exported just over 109,000 mt of refined copper, mainly to the United Arab Emirates and Turkey. Both countries can easily source copper from alternative suppliers, minimizing the risk of disruption. Global refined copper stocks have increased significantly in major exchange warehouses since January, rising 50% by early March to 1.25 million mt. This inventory buildup provides a buffer against potential supply shocks from the region. The London Metal Exchange three-month (LME 3M) copper price fell from $13,343.5/mt on Feb. 27 to $12,955/mt on March 3, suggesting the conflict's immediate impact on copper has been downward. The closure of the strait has triggered a rapid increase in energy prices, which is expected to weaken global growth and put pressure on copper demand. At the same time, higher energy prices have renewed concerns about inflation, potentially delaying any US Federal Reserve interest rate cuts. This has strengthened the US dollar recently, adding further downward pressure on copper prices. High global refined copper stocks are also weighing on prices, ...
French industry and consumer confidence measures dropped and households’ inflation expectations rose following the outbreak of the Iran war. Insee’s monthly survey of the manufacturing fell three points to 99 in March, back below the long-term average of 100 for the first time since November. Consumer confidence dropped two points to 89, the lowest reading in four months. Meanwhile, a component of...
French industry and consumer confidence measures dropped and households’ inflation expectations rose following the outbreak of the Iran war. Insee’s monthly survey of the manufacturing fell three points to 99 in March, back below the long-term average of 100 for the first time since November. Consumer confidence dropped two points to 89, the lowest reading in four months. Meanwhile, a component of the statistics agency’s household survey showed expectations of future prices surged to the highest since September 2022. The conflict in the Middle East and a jump in oil prices have knocked economic outlook for European economies, reigniting inflation pressures and dragging on activity and confidence. The Bank of France trimmed its growth forecasts and raised its inflation outlook on Wednesday. With the situation difficult to predict, it also presented bleaker scenarios with a larger drag on output and faster price increases. The surveys from Insee showed business leaders in industry were less bullish about their production and order books, while households were gloomier about their future finances. The statistics agency conducted the surveys over a period of around three weeks, starting shortly before US and Israeli strikes on Iran. In addition to greater uncertainty, inflation expectations will be a concern for the European Central Bank as it monitors whether oil price increases are feeding through to the rest of the economy. Insee’s measure of the balance of opinions on future prices jumped to -1 from -29 in February. Bank of France Governor Francois Villeroy de Galhau said on Wednesday that it is too soon to debate whether the ECB will raise interest rates as soon as its next meeting to tame inflation. But he cautioned that decisions will be by the risk of second-round effects from energy costs. “We’re obviously not responsible for the price of oil,” Villeroy said in an interview with Les Echos. “However, our duty is to keep inflation expectations anchored in order t...
If you're looking to play the memory supercycle before it peaks, two of the best stocks to invest in are Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) . Let's look at what each of these AI stocks has to offer and why a small investment, like $1,000 in each, could make sense. Image source: Getty Images. Micron is one of the three big producers of DRAM (dynamic random-access memory), alo...
If you're looking to play the memory supercycle before it peaks, two of the best stocks to invest in are Micron Technology (NASDAQ: MU) and Sandisk (NASDAQ: SNDK) . Let's look at what each of these AI stocks has to offer and why a small investment, like $1,000 in each, could make sense. Image source: Getty Images. Micron is one of the three big producers of DRAM (dynamic random-access memory), along with Korean companies SK Hynix and Samsung . About 80% of its revenue comes from DRAM, and the rest from NAND (flash) memory. Continue reading