(Bloomberg) — Copper jumped to a two-week high on speculation that the US and Iran are nearing a diplomatic resolution to the Middle East conflict that has shaken global markets.

The red metal settled 1.3% higher Thursday on the London Metal Exchange, the highest since May 14. Comex copper also advanced to the highest in two weeks. Iran and the US reached a tentative deal to extend a ceasefire and work toward an agreement to end the war, a US source familiar with the matter said. US stocks rose toward all-time highs while a rally in oil waned.

Base metals have traded in a tight range in recent weeks as investors monitor negotiations to end the conflict that has fueled inflation and reduced prospects for global growth. A potential end to the conflict would ease concerns about a prolonged hit to global growth that would crimp metals demand from manufacturers.

The optimism surrounding a ceasefire deal spilled into other corners of the copper market, with investors of exchange-traded funds betting that miners will benefit from a rally in metal prices. Traders bought 21,000 bullish options spreads on the Global X Copper Miners ETF on Thursday, on hopes the fund could rise sharply by September. The trade stands to profit if the ETF climbs above $100, with gains capped once it reaches $120.

Copper settled at $13,701.50 a metric ton in London. All other LME metals gained, with zinc up 1.1% and nickel up 0.8%.

–With assistance from Mark Burton, David Marino and Winnie Zhu.

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