London-listed mining companies traded sharply lower on Friday, with sector losses ranging from 3.5% to 7.4% after renewed tensions between the United States and Iran sparked a broader retreat across precious metals and commodity markets.
Gold Weakness Hits Major Miners
By 09:05 GMT, spot gold had fallen 2.6% to $4,566.75 an ounce, dragging down leading mining groups including Antofagasta (LSE:ANTO), Anglo American (LSE:AAL), Rio Tinto (LSE:RIO), Endeavour Mining (LSE:EDV) and BHP Group (LSE:BHP).
Antofagasta was among the weakest performers on the FTSE 100, sliding 7.4%, while Anglo American dropped 5.7%. Rio Tinto lost 3.5%, Endeavour Mining declined 3.4% and BHP Group retreated 3.8%.
U.S.-Iran Tensions Weigh on Commodity Markets
The selloff followed a deterioration in diplomatic sentiment after U.S. President Donald Trump rejected Tehran’s latest peace proposal and warned that any ceasefire arrangement remained fragile. The comments prompted investors to pull back from earlier expectations that geopolitical tensions could begin easing.
Pressure on gold prices has also been linked to broader macroeconomic concerns tied to the Middle East conflict.
Earlier this year, Iran’s closure of the Strait of Hormuz pushed crude oil prices above $100 a barrel, increasing fears of persistent inflation and strengthening expectations that the U.S. Federal Reserve may keep interest rates elevated for longer.
Higher interest rates tend to reduce the appeal of gold because the metal does not generate yield and becomes less competitive compared with income-producing assets. Despite a modest rebound in recent weeks, bullion remains around 25% below its January peak.
Copper Outlook Still Supported by Long-Term Demand Trends
Copper prices also moved lower, although demand from China has remained comparatively resilient throughout the year. Consumption linked to clean energy projects and technology sectors has helped offset weaker activity in China’s property and construction markets.
Over the longer term, copper continues to receive support from expectations of rising demand tied to artificial intelligence infrastructure, upgrades to electricity grids and the broader global transition toward cleaner energy systems.
Supply-related concerns have also underpinned the market, with China’s restrictions on sulfuric acid exports and disruptions to sulfur production in the Middle East raising the prospect of tighter global supply conditions.
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