Iran’s Attacks on Gulf Aluminum Plants Threaten Supply Crisis

Iran’s 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.

Aluminum futures on the London Metal Exchange have jumped almost 6% since two major producers confirmed attacks by Iranian drones and missiles over the weekend. 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.