Copper prices remained stable on Wednesday, supported by a weaker dollar in the run-up to the U.S. Federal Reserve's interest rate decision. However, the escalation of the Middle East conflict and its impact on growth and demand continue to dominate market sentiment.

The reference copper on the London Metal Exchange (LME) fell by 0.1% to $9,660 per metric ton at 16:13 GMT.

Oil prices have risen in recent days as markets assess the risk of supply disruptions linked to the war between Iran and Israel.

The US military is strengthening its presence in the region, reports Reuters, fuelling speculation about possible US intervention, a prospect that worries investors about an extension of the conflict to an area strategic for energy resources, supply chains and infrastructure.

In addition, concerns about the availability of copper in the LME system, due to declining inventories, large holdings of warrants - documents conferring ownership - and cash contracts (), have led to an increase in the premium on short-term contracts ().

Copper stocks () in authorized LME warehouses stand at 107,350 tonnes, down 60% since March and at their lowest level since May 2024.

Aluminum at three months fell by 0.2% to $2,547. Zinc remained almost stable at $2,637. Lead increased by 0.7% to $1,970. Pewter strengthened by 0.2% to $32,325. Finally, nickel rose 0.9% to $15,060