FX.co ★ Aluminum Hovers Near 4-Year Highs

Aluminum futures in the UK eased toward $3,500 per tonne but remained close to their highest level in more than four years, as markets braced for a deeper supply squeeze after President Trump gave no clear timeline for an end to the war with Iran. Trump said the US is “nearing completion” of its strategic objectives in Iran but warned of severe military action against the country over the next two to three weeks.

Adding to supply concerns, Emirates Global Aluminium, the region’s largest producer, suspended operations at its Al Taweelah smelter after it was struck by Iranian missiles. The conflict has driven aluminum prices more than 10% higher in March, marking the strongest monthly gain in nearly two years.

The Gulf is a critical supplier of primary aluminum, with nearly all production destined for export, but shipments have been curtailed by the closure of the Strait of Hormuz. Tightness in the physical market is also becoming evident, with LME warehouse inventories dropping to 418,675 tonnes as of March 27, the lowest level since July 2025.