Aluminium Prices Surge as Gulf Attacks Cut Middle East Supply
Attacks on Emirates Global Aluminium’s Al Taweelah smelter and Aluminium Bahrain’s plant have halted roughly 3 mtpa of capacity, nearly half of Middle Eastern output. The resulting supply shock has pushed LME aluminium prices up more than 10% since the start of the Iran war, heightening the geopolitical risk premium.
Attacks on Emirates Global Aluminium’s Al Taweelah smelter and Aluminium Bahrain’s plant have halted roughly 3 mtpa of capacity, nearly half of Middle Eastern output. The resulting supply shock has pushed LME aluminium prices up more than 10% since the start of the Iran war, heightening the geopolitical risk premium.
In the short to medium term, aluminium prices are likely to remain elevated as traders factor in the persistent supply shortfall. Inventory build‑ups may be constrained, and any further disruptions could trigger additional price spikes, prompting hedging activity.