Copper has held up to Middle East pressure but UBS says recession risk looms

UBS warns that copper, while resilient amid the Middle East conflict, has only begun to price in the risk of weaker global demand; the bank says a full‑blown recession could push prices sharply lower. Expect downside risk to copper and related miners/cyclicals if global growth deteriorates, although near‑term supply/geopolitical support has kept prices firm.

Analysis

UBS warns that copper, while resilient amid the Middle East conflict, has only begun to price in the risk of weaker global demand; the bank says a full‑blown recession could push prices sharply lower. Expect downside risk to copper and related miners/cyclicals if global growth deteriorates, although near‑term supply/geopolitical support has kept prices firm.