Iranian Strikes Disrupt Aluminum Production, Threatening Global Supply Chains

Iranian drone and missile strikes targeted aluminium smelters operated by Emirates Global Aluminium (EGA) and Aluminium Bahrain (ALBA) on March 28, 2026, causing significant damage and injuries. The attacks have led to a surge in aluminium prices, with futures on the London Metal Exchange rising 5.5% initially. The strikes highlight vulnerabilities in the global aluminium supply chain, particularly given that the Gulf region accounts for approximately 9% of global aluminium supply. EGA's Al Taweelah facility, which produced 1.6 million tons in 2025, sustained substantial damage, prompting concerns about a potential supply crisis. The closure of the Strait of Hormuz has further complicated export capabilities for regional producers. Analysts predict that production cuts of 800 to 900 kilotons could lead to a full-year deficit in the global aluminium market. The geopolitical implications of these attacks are significant, as they illustrate how localized conflicts can disrupt global industrial supply chains.

Key Points: • Iranian strikes on EGA and ALBA aluminium smelters occurred on March 28, 2026. • Aluminium prices surged by 5.5% following the attacks, indicating market instability. • The Gulf region contributes 9% to global aluminium supply, raising concerns of a supply crisis.