Aluminum leads base metals decline after progress in U.S.-Iran negotiations sparks supply recovery expectations amid broader market weakness.
Aluminum futures slid more than 4% in London, dragging base metals lower as global equities retreated and sentiment soured. The decline was amplified by reports of progress in U.S.-Iran talks, fueling bets on improved supply conditions for the metal.
Prices had previously stabilized near multi-month highs, supported by supply disruptions and strong industrial demand. However, the latest dip reflects growing concerns over potential supply normalization if diplomatic efforts ease sanctions on Iranian exports.
The broader base metals complex followed aluminum’s lead, with copper and zinc also posting sharp losses as risk appetite waned across commodities markets.