Aluminium prices hit four-year high on Hormuz disruption risk

Aluminium prices rallied again on Monday, hitting their highest in over four years, as ongoing disruptions to flows along the Strait of Hormuz continued to alter the supply-demand balance.

Failed peace talks between the US and Iran, and threats by president Donald Trump for a full blockade of the Strait, pushed three-month aluminium futures on the LME 1.7% higher to $3,571 a metric ton.

This was the highest level for the metal since March 2022, having now gained 19% since the start of 2026 alone.

After talks between US and Iranian officials in Pakistan ended without agreement, Trump said via social media: “The United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz”, adding that anyone attacking the US vessels would be “BLOWN TO HELL!”

However, military officials later said the blockade would be confined to vessels transiting through Iranian ports, with ships headed to ports belonging to the US’s Gulf allies allowed safe passage. The blockade was due to come into effect at 1400 GMT.

The Gulf region accounts for around 8% of global aluminium production, having produced 6.16m metric tons of primary aluminium in 2025, according to the International Aluminium Institute.

The war, which has also pushed oil prices to their highest since 2022 – Brent crude was up 5.6% at $100.50 a barrel on Friday – is putting additional pressure on aluminium producers due to elevated energy costs at smelting facilities.

Meanwhile, the leading producer in the region, Emirates Global Aluminium, declared force majeure on some contracts on Sdunday after its Al Taweelah recycling plant was hit by Iranian missiles.