Aluminum prices soar amid Iran's missile threat to Gulf nations
Aluminum prices shot up 2.8% to $3,228 per ton on Monday morning, mainly because worries are growing that the US and Israel's actions, and Iran's response, could disrupt the Strait of Hormuz—a key shipping route for aluminum exports.
This follows reports that Tehran launched waves of missiles against Saudi Arabia, the United Arab Emirates, and Bahrain, all of which are major aluminum manufacturers, after recent US and Israeli attacks.
Middle East's role in global aluminum scene
The Middle East is a big deal in aluminum, producing around 9% of the world's aluminum—with UAE, Bahrain, and Saudi Arabia included.
The region relies heavily on exports to global markets for revenue, helped by cheap natural gas powering its smelters, which helps keep costs low.
Global supply chains at risk if tensions escalate
Aluminum prices settled at $3,190 per tonne—still up 1.6%. Other metals like zinc and copper barely budged.
With the Middle East's $15 billion aluminum market facing new risks from these tensions, global supply chains could feel the impact if things escalate further.