Aluminium Hits Three-Month High After U.S. Strikes on Iran

Aluminium prices jumped to their highest point in three months after the United States carried out airstrikes on Iranian nuclear facilities.

Official metals market data shows that on June 23, 2025, the price of aluminium on the London Metal Exchange rose by as much as 3.3% to $2,634.50 per metric ton before settling at $2,580.50, up 1.22% for the day.

This sharp move came as investors worried that the conflict could disrupt energy supplies and metal shipments from the Middle East. Aluminium production depends heavily on energy, with power making up 40% to 45% of the cost to produce the metal.

The Middle East produces almost 9% of the world’s aluminium and relies on the Strait of Hormuz to export it. If the Strait is blocked, shipments would stop immediately because there are no other routes with enough capacity.

This would force smelters to cut production and would also disrupt imports of key raw materials like bauxite and alumina, which are needed to make aluminium.

Oil prices also went up, with Brent crude rising 2.44% to $78.89 a barrel, the highest since January. Higher oil prices increase the cost of producing and shipping aluminium, which puts extra pressure on the market.

Middle East Tensions Rattle Aluminium Markets

The situation has made investors nervous about a wider conflict in the Middle East. President Donald Trump warned that the US could target more sites in Iran unless a peace deal is reached with Israel.

Iran, in turn, has threatened to close the Strait of Hormuz, through which about a fifth of the world’s oil pblockes every day. Analysts say a full closure is unlikely but even a short disruption could push up prices and cause shortages.

In 2024, Middle Eastern countries exported about 5.14 million tonnes of aluminium, which is roughly 75% of their total output. If the Strait of Hormuz were blocked for a long time, up to 23% of global aluminium supply could be affected.

Europe would feel the impact most because it depends heavily on Middle Eastern aluminium and has fewer alternatives. Asia, including China, is less exposed because it has more diversified supply chains.

Other metals also saw price changes. Copper rose slightly, while zinc, which also needs a lot of energy to produce, went up 1.8% to $2,677 a ton. Lead and tin prices moved only a little.

The real story is that the aluminium market is sensitive to energy prices and supply chain risks. Any threat to the flow of goods from the Middle East can quickly push prices higher.

This matters for businesses and consumers everywhere because aluminium is used in cars, buildings, and electronics. For now, the market will stay on edge as long as tensions in the region continue.