Copper Falls, Aluminum Spreads Spike as US Plans Hormuz Blockade

Copper fell and a key aluminum spread flared as US President Donald Trump’s vow to blockade the Strait of Hormuz threatened more uncertainty for metals markets already reeling from the six-week conflict in the Middle East.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Copper fell and a key aluminum spread flared as US President Donald Trump’s vow to blockade the Strait of Hormuz threatened more uncertainty for metals markets already reeling from the six-week conflict in the Middle East.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The failure of US-Iran negotiations in Pakistan at the weekend — and Trump’s subsequent pledge to enforce a naval blockade of the maritime chokepoint — unraveled a brief bout of market optimism. Metals are broadly at risk from weaker demand as soaring energy prices hurt the global economy, although aluminum has gained due to a supply crunch arising from the war.The immediate reaction on the London Metal Exchange echoed that dynamic, with copper falling as much as 1.3% in early trading on Monday, while aluminum gained as much as 0.9%.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The clearest sign of escalating stress in the aluminum market was in a ballooning backwardation on the LME. The spread on cash contracts over those for delivery in three months jumped 37% from Friday to reach $91.50 a ton — the highest since 2007 — pointing to a growing call on immediate deliveries as buyers hunt for alternative sources of the metal.Emirates Global Aluminium PJSC, the Middle East’s top producer of the metal, has invoked force majeure clauses on at least some deliveries after one of its smelters was put out of action by an Iranian attack.

The Middle East accounts for about 9% of global output.The US military said it would implement the blockade of all maritime traffic entering and exiting Iranian ports at 10 a.m.

Monday Eastern Time, adding that it would allow other vessels to transit Hormuz if they’re not stopping in the Islamic Republic.Copper fell 0.5% to $12,782 a ton at 11:00 a.m. Shanghai time, while aluminum was up 0.2% at $3,504 a ton.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.