Copper prices surged to a new record high on Tuesday, as ongoing supply disruptions and trade uncertainty in the United States continued to fuel a powerful rally in base metals at the start of the year.

Benchmark three-month copper contracts on the London Metal Exchange rose 1.8% to $13,225 per metric ton during the official open-outcry session, after jumping as much as 3.1% earlier in the day to an all-time high of $13,387.50 per ton. The red metal has gained about 6.6% so far in 2026, having broken above the $13,000 level for the first time on Monday, following a strong 42% rise last year.

Nickel prices also climbed, reaching levels close to a roughly 15-month high and moving above $18,000 per ton, supported by production restrictions imposed by Indonesia.

Albert Mackenzie, a copper analyst at Benchmark Minerals, said the bullish momentum in copper began to take shape in late 2025, when prices recorded their largest annual increase in dollar terms in at least a decade. He added that a significant portion of this move occurred in December, when copper prices jumped about 14%, quickly surpassing the $12,000 and then the $13,000 levels within just a few weeks.

Mackenzie noted that supply concerns have been a key driver of prices, alongside expectations that artificial intelligence and the energy transition will boost long-term demand.

A strike at Capstone Copper’s Mantoverde copper-gold mine in northern Chile has renewed concerns over potential supply disruptions, while China’s Tongling Nonferrous has announced delays to the second phase of Ecuador’s Mirador mine, which has been affected by conflict.

Market participants have also pointed to US rhetoric surrounding potential tariffs on copper, which has led to flows of the metal into the United States and disrupted global supply chains, further adding to upward price pressure.

However, the pace of the rally has prompted some traders to question whether current price levels are justified, according to Mackenzie. As prices climb, debate is intensifying over whether sentiment and speculative flows are beginning to outpace underlying market fundamentals, even as supply risks persist and demand trends remain broadly supportive.

Bitcoin steadied on Tuesday, as an improvement in risk appetite helped the world’s largest cryptocurrency gain some support at the start of 2026. However, renewed concerns surrounding so-called treasury companies prevented the digital asset from extending its gains.

Strategy Inc. (NASDAQ: MSTR), the world’s largest corporate holder of Bitcoin, disclosed on Monday significantly higher unrealized losses on its digital asset holdings during the fourth quarter, following a decline in the value of its Bitcoin portfolio over the course of 2025.

Broader cryptocurrency prices posted modest gains in line with Bitcoin, but largely lagged advances in other risk-linked assets, particularly technology stocks.

Risk appetite improved after markets brushed aside the initial shock from the US military intervention in Venezuela, which also resulted in the arrest of President Nicolas Maduro. Investors are now awaiting greater clarity on Washington’s plans toward the Latin American country.

Bitcoin rose 1.3% to $93,576.7 by 00:59 ET (05:59 GMT). The world’s largest cryptocurrency was still down more than 6% over the course of 2025.

Michael Saylor’s Strategy reports $17.44 billion unrealized loss in Q4

Michael Saylor’s Strategy reported late Monday massive unrealized losses of $17.44 billion in the fourth quarter of 2025, largely tied to the decline in Bitcoin’s price, which represents the company’s largest holding.

There was no directly comparable figure for the fourth quarter of 2024. Strategy had posted a net loss of $670.8 million in the fourth quarter of 2024.

Last year, the company adopted new accounting standards requiring it to mark its Bitcoin holdings to fair value through earnings, a change that introduced sharp volatility into its quarterly profit and loss figures.

Shares of the Bitcoin treasury firm fell about 50% in 2025, as investor confidence broadly deteriorated in the long-term outlook of the company’s Bitcoin accumulation strategy. Prolonged weakness in Bitcoin prices, alongside Strategy’s exclusion from a major US equity index, further weighed on sentiment toward the stock.

The decline in Strategy’s share price has fueled concerns that the company could be forced to sell part of its Bitcoin holdings to meet future debt and shareholder obligations, a scenario that could generate significant selling pressure on Bitcoin prices.

Cryptocurrency prices today: altcoins rise, XRP outperforms

Broader cryptocurrency prices were mostly positive, tracking Bitcoin’s movements, while XRP outperformed its peers.

XRP jumped 12%, supported by rising capital inflows into spot exchange-traded funds, alongside a decline in the token’s supply on major trading platforms.

The world’s second-largest cryptocurrency, Ether, gained 2% to $3,220.24, while BNB rose 0.6%.

Oil prices edged slightly higher on Tuesday, as markets balanced expectations of ample global supply this year against uncertainty surrounding Venezuelan oil production following the US arrest of President Nicolas Maduro.

Brent crude futures rose by 34 cents, or 0.55%, to $62.10 a barrel by 12:30 GMT, while US West Texas Intermediate crude climbed 30 cents, or 0.51%, to $58.62 a barrel.

Tamas Varga, an oil market analyst at PVM Oil, said it was too early to assess the impact of Maduro’s arrest on the oil market balance. He added that what appeared clear, however, was that oil supplies would be sufficient in 2026, whether or not production from the OPEC member increased.

Market participants surveyed by Reuters in December said they expected oil prices to face pressure in 2026 due to rising supply and weak demand.

Additional price pressure after Maduro’s arrest

Price pressures could intensify following the US arrest of Venezuela’s leader on Saturday, as this may accelerate a potential easing of the US ban on Venezuelan oil, which could lead to higher production.

Janiv Shah, an analyst at Rystad Energy, said the firm estimated additional supply would not exceed 300,000 barrels per day over the next two to three years, assuming limited additional spending. He added that part of this increase could be self-financed by state oil company PDVSA, but reaching production of 3 million barrels per day by 2040 would require a commitment of international capital.

A source familiar with the matter told Reuters that the administration of US President Donald Trump plans to meet with senior executives from US oil companies this week to discuss boosting oil production in Venezuela.

Venezuela is a founding member of the Organization of the Petroleum Exporting Countries and holds the world’s largest proven oil reserves, estimated at around 303 billion barrels. However, the country’s oil sector has suffered a sharp decline over the years, partly due to underinvestment and US sanctions.

Venezuela’s average oil production last year stood at around 1.1 million barrels per day. Energy analysts said output could rise by as much as 500,000 barrels per day over the next two years if political stability is achieved and US investment flows into the country.

Separately, a Ukrainian security service official said Ukrainian long-range drone attacks had struck an oil depot in Russia’s Lipetsk region, as well as a missile and ammunition arsenal in the Kostroma region.

Meanwhile, Reliance Industries said it does not expect any shipments of Russian crude oil in January, which could push India’s imports of Russian oil this month to their lowest levels in years.

US President Donald Trump said on Sunday that the United States may impose additional tariff increases on Indian imports due to India’s purchases of Russian oil.

The US dollar edged lower for a second consecutive session against major currencies on Tuesday, as market tensions eased following the US military move in Venezuela, while global equities advanced, supported by dovish remarks from Federal Reserve officials.

The euro inched up to $1.1729, while the British pound rose 0.1% to $1.3552. The dollar was also slightly weaker against the Japanese yen at 156.37 yen.

Francesco Pesole, FX strategist at ING, said: “More than 48 hours after the US military operation in Venezuela, only very limited traces remain in the currency market. The early rush into the dollar as a safe haven on Monday proved to be very short-lived.”

He added that the shock from the US arrest of Venezuelan President Nicolas Maduro over the weekend had only a brief impact across most asset classes, as global equities continued to trade near record levels.

This, in turn, had indirect implications for currency markets.

Pesole said: “The strong performance of equities yesterday, despite geopolitical risks, was — in our view — the main driver behind the reversal of the dollar’s earlier gains.”

The dollar index, which measures the US currency against a basket of six major peers, stood at 98.25 points, down 0.1%, extending its losses after snapping a four-day winning streak on Monday.

Australian and New Zealand dollars outperform

Risk-sensitive currencies such as the Australian and New Zealand dollars, which often move in tandem with equity markets, outperformed.

The Australian dollar hit its highest level in more than a year at $0.6739, while the New Zealand dollar rose 0.13% to $0.5797.

The dollar was also pressured by weak US data released on Monday, which showed manufacturing activity contracted more than expected in December, falling to its lowest level in 14 months.

Additional pressure came from dovish comments by Minneapolis Federal Reserve President Neel Kashkari, a voting member of the rate-setting committee this year. In an interview with CNBC, he said he sees risks of a sudden rise in the unemployment rate.

His remarks slightly lifted expectations for monetary easing, although federal funds futures continue to price around an 80% probability that interest rates will remain unchanged at the Federal Reserve’s next meeting on January 27–28, according to CME’s FedWatch tool.

Against the offshore-traded Chinese yuan in Hong Kong, the dollar eased marginally to 6.983 yuan.

The Swiss franc was the only major currency against which the dollar posted modest gains, rising 0.08% to 0.7922 francs.