Aluminium Prices Surge After Iran's Attack on Bahrain Plant

Aluminium prices experienced a significant increase of around six percent in early trading on Monday due to missile and drone strikes launched by Iran's Revolutionary Guard against a major aluminium plant in Bahrain. This attack, which occurred over the weekend, is linked to broader regional tensions as the conflict in the Middle East escalates.

Analysts, including Ipek Ozkardeskaya from Swissquote Bank, noted that the strikes raised concerns about potential supply disruptions. Although prices later reduced to a 4.2 percent increase, they settled at $3,435 per ton on the London Metal Exchange.

The ongoing conflict, exacerbated by US and Israeli attacks on Iran, threatens to destabilize the global energy market and could impact the global economy, particularly as sanctions on Russian aluminium due to the war in Ukraine have made Middle Eastern suppliers crucial for countries in the European Union, the US, and Japan. Analysts from ANZ Bank indicated that further disruptions in delivery could add upward pressure on aluminium prices.