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Aluminum Hits Seven-Week High as Hormuz Impasse Threatens Supply

(Bloomberg) -- Aluminum advanced for a seventh day as fading prospects for a quick deal to reopen the Strait of Hormuz fueled concerns that Middle Eastern supplies would remain constrained for the foreseeable future. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Iran Shakes Up Security Team After Saying Oman Deal 'Very Close' Futures in London climbed as much as 1% to the highest level since June 23, after President Donald Trump on Monday laid out extensive new demands on Iran, including compensation for people killed by Tehran. The conditions, which are likely to be rejected by Iran, came after the Islamic republic reiterated its own requests for reparations as part of talks to wind down the conflict. The hardening positions on both sides point to a longer grind toward a deal, dimming hopes for a normalization of aluminum supplies as global inventories hover near the lowest in decades. The region accounted for about a tenth of global output before the war. "Negotiations in the Middle East are not proceeding smoothly, which should provide some support for aluminum prices," said Yan Weijun, head of nonferrous metals research at Chinese trader Xiamen C&D Inc. Aluminum surged early in the war before retreating as the US and Iran entered negotiations. Prices then resumed their advance, gaining more than 8% since the end of June as the talks to end the war dragged on and investors pared bets on US interest-rate hikes, fueling a broader base metals rally. Stockpiles of aluminum in London Metal Exchange warehouses have fallen steadily this year and are now near a quarter of a million tons, the lowest level since November 1990, despite new supplies from China and Indonesia. Major European aluminum producer Norsk Hydro ASA warned last month that the annual global supply shortfall for the metal may widen to more than 900,000 tons if trade through the Hormuz wasn't normalized. Aluminum was trading 0.6% higher at $3,337 a ton at 13:15 p.m. Shanghai time. Copper rose 0.1%, while other metals were down. Most Read from Bloomberg Businessweek Lululemon Is At War With Itself Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches Canada Stares Down 'Quebexit' Risk How Apple and India Built an Alternative iPhone Production Hub The $5 Billion Cosmetics Company Behind the High-Flying Rhode Brand ©2026 Bloomberg L.P. View Comments