Chile peso ends flat as oil rises and copper falls

Oil remained the clearest market beneficiary of the tension. Brent crude rose 4.1% to $104.4 a barrel as investors priced in the possibility of broader supply disruption in the Middle East, while London copper futures fell 1.3% to $6.48 a pound, adding pressure to Chile’s terms of trade.

The dollar’s retreat reflected skepticism that Washington was on the verge of immediate action. Axios reported that US planning could include large-scale strikes on Iranian nuclear and energy infrastructure, but Donald Trump said on Truth Social that the US would not attack Iran before the midterm elections.

That uncertainty has kept global markets on edge and supported safe-haven demand for the greenback, even as some of that bid faded by the close. Adalytica’s Global Stability Sentiment gauge remained in “extreme greed,” underscoring how quickly traders have moved to price in geopolitical risk.

For Chile, the combination of firm oil and weaker copper is an unwelcome mix. Higher energy costs can widen the trade gap and add inflation pressure, while softer copper prices hit export revenues and can weigh on the currency.

Local inflation data offered only limited relief. September consumer prices rose 0.4% on a seasonally adjusted basis, slightly below expectations, while annual inflation held at 4.1% instead of accelerating as forecast.

Traders will now watch for any fresh signals from Washington or Tehran, along with further moves in Brent, US yields and the dollar, all of which could determine whether the peso’s brief rally gives way to another risk-off surge.