Copper prices declined slightly on Friday, amid concerns over the continued closure of the Strait of Hormuz, in light of the absence of any progress in peace talks between the United States and Iran.

And the benchmark three-month copper price on the London Metal Exchange fell by 0.5% to 13,290 dollars per metric ton during official trading.

And despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks, American President Donald Trump said that he is not in a hurry to reach a peace agreement with Iran.

And Ole Hansen, head of commodity strategy at Saxo Bank, said: "Although the risks of military escalation have receded currently, the scale of the disruption is increasing day by day."

And copper on the London exchange had recorded a record level at 14,527.50 dollars per ton on January 29, but it currently faces mixed pressures, between concerns of weak economic activity affecting demand, and potential disruptions in supplies due to a shortage of sulfuric acid.

And Hansen pointed out that the main resistance level lies at 13,525 dollars per ton, which is a level the price has failed to surpass several times since early February, adding that the current state of uncertainty explains the movement of prices in a narrow range during the past two weeks.

And prices were also subjected to additional pressure after the International Copper Study Group announced that the global refined copper market might shift to a surplus in the year 2026.

And in China, the most traded copper contract on the Shanghai Futures Exchange fell by 0.7% to 102,460 yuan (14,988.52 dollars) per ton, to record a weekly loss of about 0.31%.

In contrast, prices received some support from the continued decline in inventories at the Shanghai exchange, which fell by 16.3% during the past week, and have decreased by more than half since early March.

Movements of other metals

Nickel rose on the London exchange by 0.1% to 18,750 dollars per ton, after it touched its highest levels since January 29 at 18,850 dollars, supported by concerns regarding supplies. And the International Nickel Study Group had predicted the market's shift to an annual deficit for the first time since 2021.

And in the rest of the metals, aluminum fell by 0.6% to 3,598 dollars per ton, while zinc rose by 0.6% to 3,473.50 dollars, and lead climbed 0.3% to 1,961 dollars, and tin also increased by 0.4% to 50,400 dollars per ton.

Bitcoin maintained its trading near the 78 thousand dollar level on Friday, heading toward achieving its fourth consecutive weekly gains, supported by the continued flows of institutional investments, while geopolitical tensions and the rise in oil prices limited the upward momentum.

And the largest cryptocurrency in the world rose by 0.9% to reach 78,256 dollars by 09:42 AM Eastern Time (13:42 GMT). And it had surpassed the 79 thousand dollar level briefly on Wednesday, and is heading toward achieving weekly gains of about 6%.

And data from SoSoValue company showed that spot Bitcoin exchange-traded funds listed in the United States continued to attract strong flows, with the recording of about one billion dollars as net flows during the past week, in one of the strongest waves of flows since January.

And the total cumulative net flows rose to more than 58 billion dollars, while the managed assets approached the level of 100 billion dollars, which reflects the volume of increasing institutional participation.

Strait of Hormuz risks pressuring the markets

Market sentiment remained fragile in light of the continued tensions in the Middle East, despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks.

And concerns regarding the Strait of Hormuz—one of the most important arteries of global oil supplies—continued to dominate investor attention, with the escalation of disturbances and military activities, which increased the state of uncertainty.

And oil prices remained high, as Brent crude surpassed the level of 105 dollars per barrel, which strengthened inflationary concerns and negatively affected high-risk assets such as digital currencies.

And despite that, Bitcoin showed a degree of resilience during the recent sessions, after it rose with risky assets earlier in the week supported by optimism regarding the ceasefire.

And the dollar also rose supported by the demand for it as a safe haven, in a sign of the general caution in global financial markets, while global stocks witnessed a mixed performance.

And in a separate context, Morgan Stanley Investment Management launched a money market fund dedicated to stablecoin issuers, under the name "Stablecoin Reserves Portfolio," with the aim of providing an investment tool compatible with holding the reserves of these currencies.

Movements of other digital currencies

The Ethereum currency—the second largest cryptocurrency—stabilized at the level of 2,321.06 dollars, while the XRP currency rose by 1.5% to 1.44 dollars.

Oil prices rose on Friday as fears of renewed military escalation in the Middle East intensified, after Iran published footage showing its special forces storming a cargo ship in the Strait of Hormuz, in light of the absence of any progress regarding the reopening of this vital passage.

And navigation traffic through the Strait, which used to transport about one-fifth of global oil production before the war, remains nearly at a standstill, while Iran's seizure of two cargo ships highlighted the difficulty of Washington's control over traffic in the region.

And Brent crude contracts rose by 2.18 dollars, or 2.1%, to reach 107.25 dollars per barrel by 10:19 GMT, while American West Texas Intermediate crude contracts climbed 1.78 dollars, or 1.9%, to 97.63 dollars.

And on a weekly basis, Brent crude rose by about 18%, and West Texas crude by about 16%, recording the second-largest gains since the outbreak of the war.

And the two crudes had closed at an increase exceeding 3% on Thursday, following reports of air defenses intercepting targets over Tehran, along with news of internal conflict between the hardline and moderate currents within Iran.

And Tamas Varga from the oil brokerage firm PVM said: "There are no signs of de-escalation."

For his part, American President Donald Trump said that Iran might have strengthened its military capabilities "a little" during a two-week truce, but he added that the American military is capable of eliminating them "in one day." And he had announced on Wednesday the extension of the ceasefire indefinitely to allow more time for peace talks.

And the firm "Haitong Futures" viewed in a report that the ceasefire appears increasingly like a preliminary stage for more fighting, pointing out that in the event of the failure of talks by the end of April and the resumption of fighting, oil prices might rise to new record levels this year.

And Susannah Streeter, chief investment strategist at "Wealth Club," said: "It is expected that we will witness new financial pressures, with the continued disruption of major shipments from the region," adding that this will keep the costs of many goods high.

And in light of the search by investors and governments around the world for a permanent solution, Trump emphasized that he will not set a "timeframe" for ending the conflict, saying that he seeks a "grand bargain."

And he added: "Don't rush me," in response to a question regarding the duration he is prepared to wait to reach a long-term agreement.

The U.S. dollar headed toward achieving its first weekly gains in three weeks on Friday, amid relatively quiet trading, in light of declining hopes regarding a swift calming of tensions in the Middle East as a result of the stalling of peace negotiations between the United States and Iran.

And at a time when Lebanon and Israel extended the ceasefire agreement between them for a period of three weeks before its expiration on Sunday, Iran showcased its control over the Strait of Hormuz by publishing footage of its forces storming a massive cargo ship, which kept the timing of the reopening of the most important shipping lane in the world unclear and supported the rise in oil prices.

And the dollar index, which measures the performance of the American currency against a basket of major currencies such as the yen and the euro, decreased by 0.1% to 98.75, but it remained on its way to achieving a weekly gain of about 0.5%. And the euro rose by 0.1% to 1.169 dollars.

The British pound also rose by 0.1%, even though strong British retail sales data for the month of March did not create much of an impact in the markets.

And Tommy von Bromsen said that "the main feature of the past week is the absence of any real progress in the peace talks, which is what makes things difficult for the markets in light of the absence of a clear timeframe."

And Brent crude futures rose by 1.5% to 106.60 dollars per barrel.

And the dollar benefited from the demand for it as a safe haven in light of the state of uncertainty. For it rose in March with the escalation of concerns regarding the conflict, before retreating partially this month with the growing optimism regarding the possibility of reaching a solution.

And Sho Suzuki said that "oil and the dollar still move in close proximity, and with the rise of crude prices again, it seems that the dollar will remain relatively strong."

In contrast, the Japanese yen stabilized after four days of losses, to rise by 0.1% to 159.7 against the dollar.

Anticipation of central bank decisions

Investors are heading now toward a week crowded with central bank decisions, as it is expected that each of the Bank of Japan, the European Central Bank, the Bank of England, and the Federal Reserve will announce their decisions regarding monetary policy.

And von Bromsen explained that "the basic message from the central banks so far is adopting a wait-and-see approach," pointing out that the focus will be on future guidance, in light of the policymakers' assessment of the effects of the rise in energy prices and the secondary repercussions of inflation.

And it is expected that the European Central Bank will keep the interest rate on deposits unchanged on April 30, before raising it in June, according to a poll conducted by Reuters, in an attempt to limit the impact of the energy shock resulting from the war on the economy of the Eurozone.

And in Japan, core inflation slowed to below the target of 2% for the second consecutive month in March, but it is expected to return to rising in the coming months with companies passing on the rise in fuel costs resulting from the Middle East conflict.

And it is likely that the Bank of Japan will keep interest rates unchanged in its meeting next week, while pointing to its readiness to raise them in the future to confront inflationary pressures.

And the Japanese Finance Minister, Satsuki Katayama, confirmed the readiness of the authorities to take "decisive measures" against speculative movements in the currency market.

And the Australian dollar rose by 0.1% to 0.7135 U.S. dollars, and the New Zealand dollar rose by a similar percentage to 0.5859 dollars.

And in the digital currency market, the price of Bitcoin stabilized at approximately 77,895.85 dollars.