Aluminium prices on the London Metal Exchange hovered near a three-month low on Wednesday, pressured by a strengthening US dollar and growing market optimism regarding supply stability in the Gulf region.
The benchmark three-month contract edged up 0.17% to settle at $3,238 a metric ton.
Crude oil prices recently fell nearly 3% on similar news, reflecting a broader market repricing of Middle East supply risks.
Despite the slight intraday gain, the metal remains under significant downward pressure as traders digest the dual impact of currency headwinds and shifting geopolitical risk premiums.
The softening in aluminium mirrors broader trends in energy and industrial markets, where recent reports of a potential peace deal between the United States and Iran have dampened risk sentiment.
Crude oil prices recently fell nearly 3% on similar news, reflecting a broader market repricing of Middle East supply risks.
As shipping disruptions ease, the premium previously embedded in industrial metal prices is eroding.