Aluminum prices peaked due to the impact of war

The Israel-Iran war, concerns over the Strait of Hormuz, and supply shortages have pushed aluminum prices to the highest level in the last four years.

Scraper SystemJune 02, 2026, 07:12 PM

Aluminum prices reached the highest level in the last four years as concerns about the global supply increased following the attacks by the US and Israel on Iran. The ton price of aluminum on the London Metal Exchange rose to $3,734. Later, the price stabilized at $3,716. The sharp rise in oil prices and fluctuations in commodity markets also heightened concerns about inflationary pressures. The uncertainty caused by the war brought about sharp price movements in the metal market as well. One of the biggest concerns in the market was the aluminum trade transported through the Strait of Hormuz. The annual aluminum production and export of Qatar, Bahrain, and the United Arab Emirates, approximately 6.2 million tons, are seen under pressure due to the risks on this route. About 80% of the aluminum exports of these three countries are made through the Strait of Hormuz, which stands out as one of the factors directly reflecting the tension in the region on prices. The Et-Tavila facility, owned by Emirates Global Aluminium based in the United Arab Emirates, was also damaged in missile and UAV attacks by Iran after the war, further increasing supply concerns. It is evaluated that there were supply shortages in the global aluminum market even before the war, and these problems deepened with the conflicts. Aluminum prices have increased by more than 18% since the start of the war. Thus, the highest levels seen since March 2022 have been retested. Zafer Ergezen, a futures and commodity markets expert, said one of the main reasons for the rise was the war negatively affecting supply. According to Ergezen, West Asia and the Gulf region provide about 8-9% of global aluminum production, and the risk of closure in the Strait of Hormuz pushes prices up. Ergezen stated that increasing demand and decreasing supply support prices, and that data centers, artificial intelligence infrastructures, renewable energy investments, and the electric vehicle sector also increase aluminum demand. Attention was drawn to the rise in energy costs also increasing production expenses. It was stated that electricity constitutes a significant part of the cost in aluminum production, so the rise in energy prices directly reflects on costs. Another factor making it difficult for supply to meet demand is that China, the world's largest aluminum producer, has imposed a production cap.

Aluminum prices peaked due to the impact of war

The Israel-Iran war, concerns over the Strait of Hormuz, and supply shortages have pushed aluminum prices to the highest level in the last four years.