Export Growth
July 14, 2026
US resumes blockade of Iranian ports, aluminum rebounds
Written by Nicholas Bell
Nearly one week after aluminum markets appeared to price in easing Middle East tensions, developments in and around the Strait of Hormuz have continued moving in the opposite direction.
The London Metal Exchange (LME) aluminum trading price has since recovered from the pullback discussed in the July 9 analysis, settling at $3,171 per metric ton on July 14 as the US resumed attacks in the region
The increase left LME aluminum prices about 3% above the four-month low reached in early July.
Shipping incidents continue
The UK Maritime Trade Operations (UKMTO) continued reporting security incidents between July 11-14 after commercial vessels operating near the Strait of Hormuz and the Gulf of Oman came under attack.
On July 11, UKMTO reported damage to a container ship east on Oman after a fire broke out aboard the vessel. The crew abandoned ship before local authorities rescued them.
On July 13, UKMTO issued another warning after the master of a tanker reported an unidentified projectile struck the vessel northeast of Qalhat, Oman. Later that day, UKTMO reported suspicious activity involving several small boats approaching a tanker south of Aden.
The following day, UKMTO published two additional warnings after tankers reported missile strikes southeast of Limah, Oman while transiting the southern route.
US military operations expand
At the same time, US Central Command (CENTCOM) announced additional military operations July 11 targeting Iranian military assets tied to attacks on commercial shipping, with operations ongoing. On July 14, CENTCOM announced it would resume a naval blockade covering maritime traffic entering and leaving Iranian ports. The US said it will support commercial traffic that is not subject to the restrictions.
Aluminum exchange reactions
LME aluminum prices moved higher as the security situation evolved.
After falling through much of June and early July, the LME cash price tested the $3,200 per metric ton level on July 14, retracing part of the earlier decline.
The recent increase came on the first two trading days following several days of additional shipping incidents and repeated US military operations.
Futures trading activity also increased following the initial shipping incidents in the Persian Gulf and the US military response between July 5 and July 8, as well as the additional attacks between July 11 and July 13.
LME futures volumes exceeded 314,000 contracts on July 9, July 10 and July 13 after averaging about 233,000 contracts during the five trading sessions preceding July 9, indicating market participants continued adjusting positions as geopolitical developments evolved.
