Aluminum prices fall to two-month low after US-Iran Hormuz agreement

Aluminum prices in London dropped to their lowest level in two months on June 15, 2026, following a framework agreement between the United States and Iran aimed at restoring metal shipments through the Strait of Hormuz.

The agreement is expected to ease supply disruptions in the region, which accounts for roughly 9% of global aluminum production.

By midday trading, three-month aluminum contracts had fallen more than 3% to $3,426 per metric ton, while other metals such as copper and tin posted modest gains.

Shares of Alcoa also declined 3.1% in premarket trading.

The latest agreement between Washington and Tehran is being viewed as a significant development that could increase aluminum shipments through the Strait of Hormuz, one of the world’s most important trade routes.

A reopening of the corridor is expected to help ease supply-chain bottlenecks that have weighed on the aluminum market in recent months, particularly given the region’s substantial contribution to global aluminum output.

The decline in prices reflects market expectations of improving supply conditions and reduced concerns over potential disruptions.

[Alcoa](https://www.alcoa.com?utm_source=chatgpt.com) is one of the leading companies in the basic materials sector, with a market value of approximately $18.15 billion. The company operates across bauxite mining, alumina refining, and primary aluminum production through a vertically integrated business model.

While Alcoa remains one of the world’s largest producers of bauxite and alumina, it is not among the top ten global aluminum producers, a ranking largely dominated by Chinese companies.

The company’s financial performance remains highly sensitive to fluctuations in aluminum and broader metals prices in global markets.