05/13/2026
Aluminum’s surge to multiyear highs in the wake of the Iran war is creating cost pressures for the businesses that manufacture everything from cars to beer cans.
Aluminum on the London Metal Exchange has surged more than 13% since the U.S.-Israeli strikes on Iran on Feb. 28. The commodity is now up around 19% so far in 2026 and has touched its highest levels since 2022 this year.
Aluminum in 2026
Prices are being driven higher by the shutdown of the Strait of Hormuz, a key passageway for the delivery of aluminum coming from the Middle East, according to Bernstein analyst Bob Brackett.
7% the world’s aluminum is sourced from the region. Military strikes have damaged facilities and taken about 3% of the world’s supply off the market, the analyst said.
“It’s going to be a bit hard to be able to predict 2027 at this point given the volatility that we’ve seen in the commodities,” House told analysts late last month. “With respect to steel and aluminum, in particular, even before the Middle East situation started, we were already seeing global industry shortages.”
