Iranian Attacks Disrupt Aluminium Supply Chain Amid Rising Prices

• •Iranian missile attacks have severely disrupted aluminium production in the Gulf.
• •Aluminium prices remain stable despite significant supply chain stress.
• •Renewed shipping attacks in Hormuz pose additional risks to energy shipments.

Iranian missile attacks on Gulf smelters and the blockade of the Strait of Hormuz have resulted in a loss of nearly 3 million metric tons of aluminium production capacity. Despite this disruption, aluminium prices remain stable, trading above $3,000 per ton. The International Aluminium Institute reported that Gulf production of primary aluminium fell by 2.8 million tons annually between February and May 2026. While production is gradually increasing as facilities are repaired, output remains significantly below pre-conflict levels. Increased exports from China and Indonesia are helping to mitigate shortages, but physical supply chain stress persists, with elevated premiums for European and US buyers. The situation is complicated by renewed attacks on commercial vessels in the Strait of Hormuz, raising security risks for shipping in the region.