Aluminum Prices Soar Amid Middle East Conflict

0:00On March 18, aluminum prices have surged since the war between the United States, Israel and Iran kicked off. The closure of the Strait of Hormuz has disrupted supply chains, pushing three-month London medal exchange futures up as much as 10 percent, initially settling around 8 percent higher. Prices now sit at $3,370 per ton, the highest in four years. From Bahrain, the world's biggest smelter has slashed output by 19 percent amid the ongoing Middle East conflict. That move highlights how the fighting is hitting production hard right now. Analysts warn of bigger trouble ahead. A medal's research group predicts prices could climb toward $4,000 per ton if the war drags on, reshaping global supply, and even hurting. Demand in other areas, China, the top producer, is wrapping up output but stays capped at $45.5 million a year to curb emissions and overcapacity. That might help restock supplies down the line.

1:02Experts don't see aluminum turning into a hot retail trading play like silver or copper anytime soon, but the market remains on edge as the conflict unfolds.