Strait of Hormuz Blockage Threatens Copper Industry – Here’s What To Know.

 

Strait of Hormuz Blockage Threatens Copper Industry – Updated For April 2026

On April 7th, the United States and Iran agreed to a two-week ceasefire on the condition that Iran reopens the Strait of Hormuz. The next day, rumors swirled that Iran had reneged on the agreement because of ongoing Israeli strikes on Lebanon. At this point, it is unclear whether the Strait of Hormuz will remain fully open to facilitate international trade.

Situated between the Gulf of Oman and the Persian Gulf, the Strait of Hormuz is one of the most vital passageways for crude oil in the world. Approximately 25% of the world’s oil transported over sea goes through the Strait of Hormuz annually. Unlike other crude oil passageways in the Middle East, the Strait of Hormuz has rarely been impacted during the region’s military conflicts and wars – until now.

The ongoing conflict between the US-Israeli forces and Iran has caused a major disruption in the Strait of Hormuz, with Iranian forces threatening ships that choose to traverse the passageway. This caused crude oil prices to immediately rise, peaking at nearly $120 per barrel on Monday before falling below $90/barrel after U.S. President Donald Trump suggested an end to the war may be in sight.

Blockage of the Strait of Hormuz could potentially impact more than just crude oil, though. The Strait of Hormuz is also responsible for approximately 24% of the world’s total production of sulfur, a vital material used in the copper production process. Mines and refiners use sulfuric acid in order to remove copper from the oxide ores in which the metal is found.

According to some analysts, the Strait of Hormuz blockage could directly impact the copper industry’s ability to efficiently mine and extract the metal, which is used in a wide range of different industries.

On this page, learn more about how the Strait of Hormuz’s blockage could influence the availability of copper worldwide.

About the Strait of Hormuz

The Strait of Hormuz is located between the Gulf of Oman and the Persian Gulf. It is considered a trading chokepoint, which means that goods from several nations in the Middle East need to pass through the narrow channel in order to reach the rest of the world. Specifically, the Strait of Hormuz is the only way for ships to access the Persian Gulf from the rest of the ocean. As a result, crucial materials transported from several countries in the Middle East can only be traded by sea when the Strait of Hormuz is accessible.

News headlines have focused primarily on the impact the de facto closing of the Strait of Hormuz will have on the transport of crude oil. After the United States and Israel began striking Iran in late February, the Iranian military threatened to attack ships traversing the Strait of Hormuz. This caused the price of oil to skyrocket in the first couple weeks of March and provoked fears that a protracted war with Iran could drive prices even higher.

As it turns out, oil isn’t the only crucial commodity transported through the Strait of Hormuz. Blockage on the Strait of Hormuz could also directly impact the trade and production of sulfuric acid, a crucial chemical for the mining and refining of raw copper, silver, and other metals like nickel.

What Is Transported Through the Strait of Hormuz?

The Strait of Hormuz made headlines this week as the Iranian military threatened ships and drove crude oil prices higher. However, the de facto closing of the Strait of Hormuz may pose a threat to a range of different industries. In addition to oil, the Strait of Hormuz is considered a major global chokepoint for a range of different materials, including sulfur.

According to some estimates, around half of the world’s total seaborne sulfur eventually traverses the Strait of Hormuz. The Middle East produces approximately 24% of the sulfur traded annually, and much of this sulfur travels through the narrow passageway. In other words, the Strait of Hormuz is part of an essential trade route for sulfur.

The Strait of Hormuz and the Copper Industry

Sulfur is an essential element used in the copper extraction process. Sulfur, particularly sulfuric acid, is used to leach copper from ores. Copper leaching refers to the process of dissolving copper ores inside of acid to extract the metal. While it is possible to extract copper without using the sulfuric acid leaching process, sulfuric acid is crucial for the hydrometallurgical approach to extracting copper from oxidized copper ores.

In this process, sulfuric acid is used to dissolve the copper ore, liberating copper ions from the other materials found in the ore. For the correct type of (oxidized) ore, the sulfuric acid copper extraction approach is highly effective at removing copper from otherwise impure ores.

Sulfuric Acid in the Copper Extraction Process

Although not all copper is extracted using sulfuric acid, experts estimate that the sulfuric acid leaching process is used to extract about 20% of all copper extracted annually. In the United States and much of Latin America, the figure is even higher – some estimates show that anywhere from 30% to 40% or more of extracted copper is extracted using sulfuric acid in these regions.

The effectiveness of sulfuric acid copper leaching varies, ranging from 70% to 90% in most settings. Sulfuric acid is primarily used to extract copper from low-grade and oxide ores, with smelting being preferred for the extraction of pure copper from non-oxidized or high-grade copper ores.

Nonetheless, sulfuric acid remains a key part of the extraction of copper for hundreds of tons of the metal per day. With copper prices already on the rise, the ongoing blockage of the Strait of Hormuz could pose a major issue for the copper industry. Because so much essential sulfur moves through the Strait of Hormuz, a protracted blockage of this trading chokepoint could cause the available supply of refined copper to dwindle even more. 

Strait of Hormuz Blockage – How Long Will It Last?

It is unclear at this point how long the Strait of Hormuz will be difficult for transport vessels to traverse. Last week, U.S. President Donald Trump announced a plan to insure oil tankers traveling along the Strait of Hormuz, urging them to “show some guts” and proceed to deliver the vital resource through the passageway.

For Iran’s part, the country’s military forces have continued to threaten oil tankers and other ships attempting to pass through the Strait of Hormuz. Tehran said that it plans to continue blocking oil traveling through the Strait of Hormuz until U.S. attacks cease. Trump claimed in a Truth Social post that the U.S. military will exact “death, fire, and fury” if the country follows through on its plans to blockade the strait.

The status of the Strait of Hormuz will likely hinge on peace talks – if any develop – between the United States and Iran. D.C. and Tehran have both refused to back down, with President Trump telling reporters on Monday hat only “unconditional surrender” will end the U.S. strikes on Iran. Trump appeared to walk these statements back on Monday after oil prices hit a years-long high, suggesting that the United States is close to winning the war.

Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones […] If you look, they have nothing left. There’s nothing left in a military sense.

The Strait of Hormuz is poised to be one of Tehran’s biggest bargaining chips. This passageway, which is only around 24 miles wide at its most narrow point, is crucial for the trade of crude oil, sulfur, and other commodities coming out of the Middle East.

On Tuesday, reports emerged that Iran may be placing mines along the Strait of Hormuz in an attempt to deter ships from passing through. The Trump administration reported that there is no evidence but that, if Iran does place mines on the Strait of Hormuz, there will be immediate retaliation from the United States. President Trump later said in a Truth Social Post that the U.S. military had successfully destroyed “ten inactive mine laying boats.” Regardless of the status of Iran’s mine-laying operations, analysts argue that this escalation could signal that Iran is serious about its threat to halt the trade of oil and other crucial resources through the famous chokepoint strait.

Here’s How the War in Iran Could Impact the Copper Market

The war in Iran threatens the availability of a key resource used in the extraction of copper at a time when the metal is already in the middle of a major price run. The spot price of copper is up by nearly 27% per pound since last year, as of March 10th of 2026. Retail and industrial demand for copper climbed throughout 2025, with a combination of AI-driven demand and uncertainty surrounding Trump administration tariffs pushing prices higher.

In the near term, it seems unlikely that even a full embargo of the Strait of Hormuz will significantly impact the availability of copper. Up to one billion metric tons of copper are readily mineable or present in reserves, and these reserves could be stretched pretty far – even in a ravenous demand climate like this one.

That being said, a prolonged embargo of the Strait of Hormuz could have a longer-term effect on the copper market, especially as the lack of available sulfuric acid coming out of the Middle East complicates the smelting process in places like Latin America and the United States. Remember, sulfuric acid leaching is used in an estimated 30-40% of copper extractions in the United States. A supply chain disruption for sulfur could make the extraction process costlier, which would drive the cost of processed copper significantly higher.

These effects would be especially clear in the retail investment-grade copper market, as investment products like coins, bars, or rounds are one of the last considerations for smelters, many of whom specialize in industrial products like copper cathodes. If an embargo of the Strait of Hormuz leads to copper demand outstripping available supply, retail purchasers of copper could pay the price.

Final Thoughts: The Strait of Hormuz and the Copper Industry

Iran has threatened an embargo of the Strait of Hormuz as its war with the United States and Israel rages on. The Strait of Hormuz is one of the world’s biggest choke points for crude oil, as well as sulfur, which is a core commodity used in the copper extraction process. Depending on how long the US-Iran war lasts and how willing Tehran is to follow through on its plans to block trading ships in the strait, the copper industry could see a major shakeup.

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