Aluminum Hits Four‑Year High on Hormuz Blockade Threat
2h
Developing
1
Three‑month aluminum futures on the London Metal Exchange climbed 1.7% to $3,571 a metric ton in mid‑morning European trading, the highest level since March 2022, as traders reacted to the breakdown of U.S.–Iran peace talks and President Trump’s threat to blockade the Strait of Hormuz. The Wall Street Journal reports that the Middle East is heavily dependent on the strait to export aluminum and import raw materials, with major producers including Saudi Arabia, the United Arab Emirates and Bahrain, raising fears of supply bottlenecks if shipping is disrupted. The price spike is also visible in the physical market, with aluminum for immediate delivery trading about $91.50 per metric ton above the three‑month contract, a sign of tight near‑term availability. For U.S. manufacturers that rely on aluminum for autos, aircraft, construction and cans, the move adds another potential cost pressure on top of already higher energy prices from the Iran war. Market watchers online are flagging the metal’s rally as one more channel through which the Hormuz standoff could feed into broader inflation and supply‑chain strain in the U.S. and Europe.