Aluminum Rises Amid Middle East Tensions. Aluminum prices surged 2.9% to $3,231.50 per ton on the London Metal Exchange as geopolitical conflict threatens critical supply routes. The Strait of Hormuz, essential for Middle Eastern aluminum producers, faces disruption risk following escalating tensions between the US, Israel, and Iran. The region accounts for approximately 9% of global aluminum production capacity, making supply chain vulnerabilities significant. Analysts warn that disruptions to bauxite and alumina flows feeding regional smelters present substantial risks. Prices have climbed to their highest levels since 2022, with the US Midwest premium reaching record highs above one dollar per pound. Market uncertainty intensifies as geopolitical instability compounds existing pressures from currency fluctuations and speculative trading activity in Asian markets.
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