Aluminium Supply Concerns Surge After Iran Targets Gulf Facilities

The latest strikes represent another setback for the region’s commodity sector, where exports were already under pressure due to the effective shutdown of the Strait of Hormuz. In addition to ongoing shipping disruptions, damage to key industrial facilities could prolong recovery timelines even after the conflict subsides.

On Saturday, Iranian attacks hit two major aluminium producers in the Middle East, highlighting the increasing strain the conflict is placing on critical global industries. Emirates Global Aluminium (EGA), the region’s largest producer, reported “significant damage” at its Abu Dhabi operations, while Aluminium Bahrain stated it is still evaluating the extent of the impact on its plant.

These developments further deepen concerns for the sector, as supply chains remain constrained and infrastructure damage threatens longer-term output. Aluminium prices, which had already been trending higher prior to the conflict, have surged further as traders brace for tighter supply and declining global inventories.

The Middle East contributes roughly 9% of global aluminium production, much of which is now effectively inaccessible. According to Goldman Sachs, rising commodity prices driven by these disruptions could add further pressure on the global economy.