Aluminum futures in the UK climbed above $3,500 per tonne, nearing their highest level in more than four years, as investors turned increasingly cautious ahead of President Donald Trump’s deadline for Iran to agree to a peace deal. Trump said on Monday he would not extend the Tuesday night deadline and warned that the United States is prepared to strike Iranian bridges and power infrastructure if Tehran fails to comply.
Emirates Global Aluminium, the region’s largest producer, has halted operations at its Al Taweelah smelter after the facility was struck by Iranian missiles last month. The Gulf region is a key supplier of primary aluminum, providing around 9% of global output. However, exports have been severely disrupted by the closure of the Strait of Hormuz.
Signs of tightening conditions in the physical market are also emerging, with LME warehouse inventories dropping to 418,675 tonnes as of March 27, the lowest level since July 2025.
