Aluminum records its largest weekly gain since 2024 as escalating tensions in the Middle East raise concerns over potential supply disruptions. The rally reflects heightened demand for industrial metals amid fears that regional instability could affect energy markets and global production chains.
Traders increase exposure to base metals as geopolitical risk pushes commodity prices higher across several segments. Aluminum, which relies heavily on energy-intensive smelting processes, becomes particularly sensitive to any threats to power supply and logistics routes.
Market participants say the move underscores how quickly geopolitical developments can influence commodity pricing. The surge highlights aluminum’s role as a key industrial input and its vulnerability to shifts in global energy and supply dynamics.