Middle East Conflict Closes Strait of Hormuz
Analysis based on 7 articles · First reported Mar 17, 2026 · Last updated Mar 18, 2026
The closure of the Strait of Hormuz due to the U.S.-Israeli war against Iran has significantly disrupted global aluminium supply chains, leading to a 12% increase in Aluminium prices to a four-year high. This forces major producers like Emirates Global Aluminium and Aluminium Bahrain to reroute their exports and imports, increasing logistical costs and potentially impacting industries reliant on aluminium in the United States and Europe.
An ongoing conflict in the Middle East, specifically the U.S.-Israeli war against Iran, has led to the closure of the Strait of Hormuz, a critical shipping lane. This disruption is forcing major aluminium producers in the Gulf region to seek alternative routes for their exports and raw material imports. Emirates Global Aluminium (EGA) is diverting its operations through Oman's Oman===SOHAR Port and Freezone, trucking alumina feedstock to its smelters in Dubai or Abu Dhabi and then transporting finished aluminium back to Sohar for export. Aluminium Bahrain (Alba) is also exploring similar options, considering the Oman===SOHAR Port and Freezone and Saudi Arabia===Jeddah on Saudi Arabia's Red Sea Coast. These logistical challenges have caused global Aluminium prices to surge by 12%, reaching a four-year high, due to concerns about potential shortages in the global market. The Gulf region accounts for approximately 9% of the world's aluminium supply, with nearly 80% of it exported to the United States and Europe for use in the auto, construction, and packaging industries.
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