Iran’s Attacks on Gulf Aluminum Plants Threaten Supply Crisis

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:An Emirates Global Aluminium site in Abu Dhabi, in 2022.Iran’s weekend strikes on Persian Gulf aluminum plants are threatening to send a fragile market into crisis, raising the prospect of record prices for the metal used in everything from airplanes to food packaging and solar panels.On the first day of trading after two major producers confirmed attacks by Iranian drones and missiles, futures on the London Metal Exchange surged as much as 6%.

The Middle East accounts for about 9% of global production, but its impact is being amplified because constraints on output elsewhere have eroded inventories, leaving the market with little buffer to cushion any shocks.