News

Aluminium surges as US-Iran conflict threatens supply disruptionsAluminium prices rose 2.8% to $3,228/tonne on the LME as Middle East unrest threatens supply through the Strait of Hormuz, impacting Iran and Bahrain.By CNBCTV18.com March 2, 2026, 8:33:07 AM IST (Published)2 Min ReadAluminium prices surged due to worries that violence in an area that accounts for a sizable portion of world production might disrupt vital supply channels for Middle Eastern producers.

Early trade saw the metal's price rise as high as 2.8% to $3,228 per tonne on the London Metal Exchange. Many of the largest aluminium producers in the region use the Strait of Hormuz, a trade chokepoint off the coast of Iran, to import raw materials and export metal.

Also Read: Iran FM: Oman events not intentional; military units now independent and isolated, acting on prior directives

The US and Israel bombed Iran, and Tehran responded with strikes in several nations, escalating the Middle East conflict over the weekend.

According to consulting firm AZ China Ltd., the region produces around 9% of the world's aluminium, and prices have historically been sensitive to increases in regional tensions.

President Donald Trump urged the military and police of the Islamic Republic to submit or "face certain death," stating that US forces would keep attacking Iran until his goals were met. In retaliation for the US-Israeli attacks, Tehran has launched waves of missiles against its neighbours, Saudi Arabia, the United Arab Emirates, and Bahrain, all of which are major aluminium manufacturers.

Aluminium has increased 1.6% to $3,190 per tonne. Zinc was up 0.2% in London, while copper was marginally down after rising earlier. Iran is now a significant supplier of zinc to China, which helped to keep domestic pricing in the Chinese market last year relatively low when compared to the global market.Continue Reading(Edited by : Juviraj Anchil)Tagsaluminium prices