Aluminum futures in the UK rose more than 1% to around $3,110 per tonne in March, hitting a four-week high as mounting tensions in the Middle East raised fears of disruptions to key supply routes for regional producers. Shipping flows now face increased risks near Iran, particularly through the strategically vital Strait of Hormuz, a critical passageway for metal exports and imports of raw materials such as bauxite and alumina.
Hostilities escalated over the weekend after joint US-Israeli strikes on Iran, which triggered retaliatory attacks by Tehran across multiple countries. The Middle East accounts for roughly 9% of global aluminum production capacity, magnifying market sensitivity to any potential supply interruptions.
Washington has indicated it will maintain its air campaign until its strategic objectives are achieved, while Iran has responded with successive missile barrages targeting neighboring states, including Saudi Arabia, the UAE, and Bahrain—each a significant contributor to global aluminum supply.
