Iran's attacks on aluminum producers are sending 'shockwaves' through the metals market

In this article Follow your favorite stocks CREATE FREE ACCOUNT BAHRAIN - APRIL 17: Aluminium ingots seen at the Aluminium Bahrain B.S.C plant in Bahrain, Tuesday, April 18, 2006. (Photo by Phil Weymouth/Bloomberg via Getty Images) Bloomberg | Bloomberg | Getty Images Aluminum closed in on prices not seen since 2022 following Iranian attacks on two Middle Eastern producers over the weekend, heightening fears of a supply crisis for the industry. Futures prices on the London Metal Exchange initially jumped 5.5% on Monday to briefly touch $3,492 per tonne, a price last seen in April 2022. It pulled back slightly by Monday afternoon to land 3.5% higher at $3,381 per tonne. Aluminum has risen around 10% since the conflict began on Feb. 28, though it fell briefly last week alongside most other asset classes amid fears of a global recession. Emirates Global Aluminium and Aluminium Bahrain , two of the Gulf's largest producers, came under fire from Iranian drones and missiles on Saturday. EGA said in a statement that its Al Taweelah smelter sustained "significant" damage in the strikes, injuring several people. "The safety and security of our people is our top priority at all times," CEO Abdulnasser Bin Kalban said. "We are deeply saddened and are assessing the damage to our facilities." 'Shockwaves' through the global market Saturday's attacks only served to darken the outlook for commodity firms in the region, which have faced severe supply disruption over the past month. Around 9% of global ​aluminum supply comes from the Gulf, and most firms there have been unable to export the metal beyond the region since Iran effectively closed the Strait of Hormuz. EGA's damaged smelter produced 1.6 million tons of cast metal in 2025, according to its statement. "The attacks have sent shockwaves through the global aluminum market, raising the risk of a supply crisis that could reshape the industry," April Kaye Soriano, aluminum research analyst at S&P Global Energy, told CNBC over e...