{"id":61870,"date":"2026-05-12T20:38:23","date_gmt":"2026-05-13T00:38:23","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/commodities-surge-to-record-highs-as-pentagon-estimates-29b-iran-war-cost\/61870\/"},"modified":"2026-05-12T20:38:23","modified_gmt":"2026-05-13T00:38:23","slug":"commodities-surge-to-record-highs-as-pentagon-estimates-29b-iran-war-cost","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/commodities-surge-to-record-highs-as-pentagon-estimates-29b-iran-war-cost\/61870\/","title":{"rendered":"Commodities Surge to Record Highs as Pentagon Estimates $29B Iran War Cost"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Copper prices surged to a fresh record high above $14,000 per ton<\/strong>, driven by a &quot;perfect storm&quot; of recovering Chinese demand and massive AI-related infrastructure needs.<\/li>\n<li><strong>The Pentagon has estimated the cost of the ongoing Iran War at roughly $29 billion<\/strong>, according to internal reports, as regional powers seek alternative energy transport routes.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> held steady at $4,718 per ounce<\/strong> despite hotter-than-expected U.S. inflation data that has significantly dampened hopes for a Federal Reserve rate cut.<\/li>\n<li><strong>A labor dispute at Samsung (<a href=\"\/stock\/005930.KS\">005930.KS<\/a>) is intensifying<\/strong>, with unions demanding 15% of operating profits as the company faces mounting pressure from AI memory rivals.<\/li>\n<li><strong>Japan\u2019s trade surplus beat expectations at \u00a5803.5 billion<\/strong>, supported by a significant jump in bank lending as the domestic economy shows unexpected resilience.<\/li>\n<\/ul>\n<h2>Commodities Hit New Frontiers Amid Geopolitical Strain<\/h2>\n<p><strong>Copper<\/strong> has reached unprecedented levels, soaring past <strong>$14,000 a ton<\/strong> to hit a new record high. Analysts describe the current market as a &quot;perfect storm,&quot; where tightening global supply is being met by an explosion in demand for electrical wiring and data-center expansion required for the <strong>global AI boom<\/strong>.<\/p>\n<p>While the <strong>Iran War<\/strong> has raised concerns regarding global economic stability, the demand from <strong>China<\/strong> and the critical role of copper in AI infrastructure have outweighed these fears. <em>Market participants are increasingly viewing copper not just as an industrial metal, but as a core technology asset.<\/em><\/p>\n<p><strong>Gold<\/strong> remains resilient, trading near <strong>$4,718 per ounce<\/strong>. The metal&#39;s price was tested by <strong>hotter-than-expected U.S. inflation data<\/strong>, which bolstered <strong>Treasury yields<\/strong> and the <strong>U.S. Dollar<\/strong>. These factors typically pressure bullion, yet the ongoing conflict in the Middle East continues to support gold&#39;s status as a premier safe-haven asset.<\/p>\n<h2>Pentagon Reveals War Costs as Energy Routes Shift<\/h2>\n<p>The <strong>Pentagon<\/strong> has officially put the cost of the <strong>Iran War at approximately $29 billion<\/strong>, according to reports from the <em>Wall Street Journal<\/em>. The staggering figure comes as the conflict continues to disrupt traditional shipping lanes and energy markets across the globe.<\/p>\n<p>In response to heightened shipping risks in the <strong>Strait of Hormuz<\/strong>, <strong>Pakistan<\/strong> and <strong>Iraq<\/strong> have reportedly struck strategic agreements with <strong>Iran<\/strong>. These deals aim to facilitate the transport of <strong>liquefied gas and oil<\/strong> via alternative arrangements to bypass current maritime threats.<\/p>\n<h2>Samsung Labor Tensions Threaten AI Memory Lead<\/h2>\n<p>A major labor dispute is unfolding at <strong>Samsung Electronics (<a href=\"\/stock\/005930.KS\">005930.KS<\/a>)<\/strong>, where the union is demanding <strong>15% of operating profits<\/strong> be allocated to worker bonuses. <strong>Samsung<\/strong> has countered with an offer of <strong>10% plus special compensation<\/strong>, but the two sides remain far apart.<\/p>\n<p>This internal friction comes at a critical time for the tech giant, as it faces intensifying competition from <strong>SK Hynix (<a href=\"\/stock\/000660.KS\">000660.KS<\/a>)<\/strong> and <strong>Micron Technology (<a href=\"\/stock\/MU\">MU<\/a>)<\/strong>. Both rivals are aggressively expanding their capacity to meet the <strong>booming demand for high-bandwidth memory (HBM) chips<\/strong> essential for AI processing.<\/p>\n<h2>Japan\u2019s Economic Data Beats Forecasts<\/h2>\n<p><strong>Japan<\/strong> reported a robust <strong>Trade Balance of \u00a5803.5 billion<\/strong> for March, comfortably exceeding the estimated <strong>\u00a5783.5 billion<\/strong>. The <strong>Current Account Balance<\/strong> also saw a massive beat, coming in at <strong>\u00a54681.5 billion<\/strong> against expectations of <strong>\u00a53896.1 billion<\/strong>, signaling strong international investment returns.<\/p>\n<p>Domestic credit conditions are also tightening, with <strong>Japan Bank Lending<\/strong> increasing by <strong>5.4% year-over-year<\/strong> in April. <em>This uptick in lending suggests that Japanese corporations are increasing capital expenditures despite the volatile global backdrop, further stabilizing the Yen.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Copper prices surged to a fresh record high above $14,000 per ton, driven by a &quot;perfect storm&quot; of 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