FX.co ★ Aluminum Prices Move Back Near 4-Year Highs

Aluminum futures in the UK climbed above $3,570 per tonne, returning close to their highest level in more than four years as the ongoing closure of the Strait of Hormuz threatened a prolonged disruption to Middle Eastern supply. The crucial shipping lane remains shut, with Iran insisting it will not reopen the route as long as the US maintains its blockade on vessels traveling to and from Tehran. The Persian Gulf region accounts for roughly 9% of global primary aluminum output. In addition to curbing shipping flows, the conflict has directly hit production capacity: major refineries in the UAE and Bahrain suffered damage following Iranian attacks. Analysts cautioned that regional supply constraints could last for months even if hostilities cease and Hormuz is reopened, as repairing and restarting smelting and refining facilities is expected to take significant time. Emirates Global Aluminium, the region’s largest producer, indicated it may take at least a year to fully restore production.