Copper prices have skyrocketed, with the London Metal Exchange reporting prices above $14,000 per ton and COMEX futures exceeding $6.50 per pound. This surge is driven by a convergence of factors, including heightened demand from the artificial intelligence sector and ongoing supply constraints. The recent geopolitical tensions surrounding Iran and the Strait of Hormuz have disrupted the sulfuric acid supply chain, crucial for copper smelting, leading to a significant increase in sulfur prices. Additionally, the Grasberg copper mine in Indonesia, one of the world's largest, is operating below capacity due to infrastructure issues, further constraining supply. Analysts are now projecting a global copper supply deficit of 350,000 tons by 2027, a stark shift from previous expectations of balance. The demand for copper is also being fueled by the rapid construction of data centers by major technology firms like Microsoft and Google, which require vast amounts of copper for their infrastructure. The copper market is thus facing a 'perfect storm' of high demand and limited supply, indicating that prices are likely to remain elevated for the foreseeable future.