London-listed mining stocks registered steep losses on Friday after a deterioration in diplomatic sentiment between the United States and Iran sparked a wider selloff across precious metals and commodity markets.
As of 05:05 ET (09:05 GMT), spot gold had dropped 2.6% to $4,566.75 an ounce. That decline weighed heavily on large-cap mining names. Antofagasta led losses on the FTSE 100, tumbling 7.4%. Anglo American fell 5.7%, Rio Tinto lost 3.5%, Endeavour Mining slipped 3.4%, and BHP Group was down 3.8%.
The move lower followed a setback in diplomatic communications after U.S. President Donald Trump rejected Tehran's latest peace proposal and cautioned that any ceasefire remained fragile. The shift prompted investors to unwind prior bets that tensions might ease, removing some of the risk premium that had supported bullion and related equities.
Beyond geopolitics, the pressure on gold reflects broader macroeconomic concerns tied to the Middle East conflict. Earlier this year, Iran's closure of the Strait of Hormuz pushed crude oil above $100 a barrel, stoking inflation fears and strengthening expectations that the U.S. Federal Reserve would keep interest rates higher for longer. Higher borrowing costs tend to weigh on gold because the metal provides no yield and can be less attractive compared with interest-bearing assets.
Bullion has already fallen roughly 25% from its January peak, even after a partial recovery in recent weeks. The latest retreat erased some of the gains that had supported gold miners' valuations and contributed to the sharp sector-wide declines observed on Friday.
Copper dynamics
Copper prices also eased, though the metal's fundamentals show mixed influences. Chinese demand has remained relatively resilient this year, driven in part by consumption from clean energy and technology sectors. That strength has helped offset weakness in property and construction activity in China.
Over a longer horizon, copper continues to find support from expectations of rising demand tied to artificial intelligence infrastructure, power grid upgrades and the broader energy transition. Supply-side issues have also provided a floor to prices. The article notes China's restrictions on sulfuric acid exports and disruptions to sulfur production in the Middle East as potential factors that could tighten global market conditions.
Market implications
The combination of renewed geopolitical risk, past oil-driven inflationary pressure and the prospect of sustained higher interest rates has translated into a risk-off reaction in precious metals and related equities. The immediate impact was most visible in major miners listed in London, where share price falls ranged from mid-single digits to high single digits for the largest decliners.
While copper's outlook remains supported by structural demand themes, near-term price movements have been influenced by the same risk sentiment that hit gold, producing downward pressure across commodity-linked stocks.
Summary points
- Renewed deterioration in U.S.-Iran relations triggered a selloff across precious metals and mining stocks, with the sector down between 3.5% and 7.4%.
- Spot gold fell 2.6% to $4,566.75 an ounce, and bullion is roughly 25% below its January peak despite a partial recovery.
- Copper softened, though Chinese demand from clean energy and technology sectors and supply risks tied to sulfuric acid and sulfur production have lent some support.
Note - All percentage moves and price levels reported reflect the figures cited above as of the time noted in the article.