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Updated · Bloomberg · Jun 30Aluminum Plunges 15% in June as US-Iran Deal Revives Middle East Supply
2 articles · Updated · Bloomberg · Jun 30Summary
- Aluminum is headed for its steepest monthly loss since 2008, dropping more than 15% in June as traders unwind a war-driven rally.
- The selloff followed an interim US-Iran peace deal that raised expectations Middle Eastern shipments will resume as the Strait of Hormuz reopens.
- That shift erased gains built over the previous three months, when fears of disrupted regional supply had pushed prices higher.
- The market reaction reflects the region’s weight in global supply: Middle Eastern producers account for nearly a tenth of world aluminum output.
Insights
With key Mideast smelters offline for a year, is the current aluminum price drop dangerously premature? Does this crisis reveal a fatal flaw in America's high-tariff, high-import aluminum strategy?