Iran attacked two major Gulf aluminum producers, stoking concerns of global shortages. (Semafor)
After strikes this weekend, aluminum prices jumped to a four-year high. That’s because the Middle East produces 9% of the world’s aluminum—a critical component of solar panels, transmission infrastructure, wind turbines, and EVs.
The bottom line: A prolonged Strait of Hormuz shutdown could disrupt aluminum supply for clean energy manufacturing, with few alternatives outside sanctioned Russian and Chinese sources. Higher prices, meanwhile, will get passed through to end users…and eventually eat into demand.
While we’re here: President Trump claimed (again) that the US could end the Iran war without reopening the Strait. Meanwhile, the national gas average has topped $4 per gallon for the first time since 2022.