Countries such as Indonesia, Vietnam and the Philippines have installed more rooftop solar panels and other green infrastructure in recent years, driven by higher energy bills caused by rising oil and gas prices. However, these green projects face uncertainty, as the blockade of the Strait of Hormuz affects aluminum supplies.
Major aluminum smelters in the Middle East have been hit by Iranian missile and drone attacks, according to ANZ Bank, noting the loss of nearly 1.6 million tons of production following the attacks on Emirates Global Aluminium’s Taweelah and Alba facilities on March 28.
As Chinese companies work to increase their production of the metal, they face a regulatory cap of 45 million tons.
Aluminum prices on the London Metal Exchange have risen more than 13 percent since the start of the Iran war on February 28, or an increase of 19 percent year to date, according to Reuters. The benchmark price for the metal was traded at US$3,597 per tonne on Tuesday.
Overall, nearly 3 million tonnes of production could be affected, ANZ Bank said. According to Wood Mackenzie, a global energy research firm, the conflict could remove between 3 million and 3.5 million tons of aluminum from production this year in the global market, which recorded an output of just under 74 million tons in 2025.
