Iran Hormuz restrictions drive copper and silver price surge

Saturday 18 April 2026 - 13:15

By: Dakir Madiha

Iran Hormuz restrictions drive copper and silver price surge

Renewed restrictions by Iran in the Strait of Hormuz are intensifying pressure on global commodity markets and accelerating gains in copper and silver prices. The measures follow an escalation in tensions with the United States, including a naval blockade on Iranian ports that took effect on April 13. The confrontation has disrupted a critical maritime corridor and reinforced investor demand for industrial metals tied to energy transition technologies.

Iran reinstated limits on transit through the Strait after the United States signaled it would maintain the blockade until a broader agreement is reached. The move has added uncertainty to global supply chains and heightened concerns over the security of energy and raw material flows. The Strait remains a key route for global trade, and disruptions there often trigger rapid market reactions across commodities.

Copper prices have remained elevated, trading near $12,830 per metric tonne in early April, in line with expectations for strong annual averages. Forecasts suggest prices could approach $12,500 in the second quarter, with upside risk driven by geopolitical instability and tightening supply. Silver has recorded a sharper rally, rising from around $29 per ounce at the start of 2025 to nearly $80 by mid-April 2026, supported by a sixth consecutive year of supply deficits.

Structural demand linked to the global energy transition continues to underpin both metals. Copper is essential for solar installations, wind turbines, electric vehicle charging systems, and power grid expansion. Governments and corporations are directing large-scale capital into renewable energy and electrification projects, sustaining long-term consumption growth.

Silver demand is also supported by industrial applications, particularly in solar panel manufacturing. Although manufacturers are reducing silver content per panel, total industrial demand remains resilient. Growth in artificial intelligence infrastructure, data centers, electric vehicles, and 5G networks continues to absorb supply. The global silver market is expected to remain in deficit through 2026, extending a trend that began in 2020.

Market participants are increasingly positioning for further price gains. Analysts project that copper could reach $15,000 per tonne if disruptions intensify across major producing regions. The metal is viewed as strategically critical due to its role in electrification and advanced technologies. Tight inventories and supply constraints are reinforcing expectations of a sustained upward trend, even as volatility remains tied to developments in the Middle East.