Over the weekend of March 28-29, 2026, retaliatory Iranian missile strikes targeted major industrial facilities in the Gulf, severely disrupting global supply chains for critical materials like aluminium and helium. The attacks directly hit two of the world's largest aluminium producers: Emirates Global Aluminium (EGA) and Aluminium Bahrain (Alba). Alba has already cut its production output by roughly 19%, while EGA reported major damage to its Al Taweelah smelter, which produced 1.6 million tons of cast metal in 2025.
The Middle East accounts for approximately 9% of global aluminium production. Analysts from ANZ estimate that 4–5 million metric tons of exports are now at risk. This immediate supply shock sent commodity prices soaring. The London Metal Exchange (LME) aluminium benchmark surged 5% to around $3,492 per ton, nearing a four-year high. Prices have climbed about 10% since the U.S.-Israeli conflict with Iran began on February 28.
The disruption extends beyond aluminium. The conflict has led Iran to block the Strait of Hormuz with sea mines, halting a critical maritime chokepoint that handles 20% of global liquefied natural gas (LNG) commerce. Qatar's Ras Laffan Industrial City, a facility producing about one-fifth of the world's LNG and roughly 30% of its helium, stopped production on March 2 and declared force majeure.
Helium is a critical component in semiconductor manufacturing, used as an inert gas and coolant. This secondary supply squeeze threatens the tech industry, particularly memory chip producers Samsung and SK hynix in South Korea and advanced processor manufacturer TSMC in Taiwan. Asian equity markets reacted sharply, with South Korea's KOSPI index falling 12% and Taiwan's TAIEX dropping 4.4% in early March.
Analysts warn of a potential reshaping of global markets. "The attacks have sent shockwaves through the global aluminum market, raising the risk of a supply crisis," said April Kaye Soriano, an analyst at S&P Global Energy. While China, the world's largest aluminium producer, could theoretically restart idle smelters, Soriano believes its ability to ramp up output quickly is limited, leaving the global market exposed to further shocks.
