Benchmark three-month aluminium on the London Metal Exchange fell 0.41% to $3,073 a ton, marking the lowest level in four months.
The decline reflects a broader retreat in risk premiums across commodities as market anxiety over Gulf region supply disruptions continues to subside.
The move in aluminium mirrors a synchronized sell-off in energy markets, where crude oil benchmarks also extended losses to hover near four-month lows.
Traders are increasingly confident that shipping traffic through the Strait of Hormuz remains stable, reducing the immediate threat of supply bottlenecks that had previously propped up prices in both energy and industrial metals.
A strengthening US dollar has further weighed on aluminium prices, making the metal more expensive for buyers using other currencies.
This currency headwind, combined with the fading geopolitical risk premium, has created a dual pressure point for the industrial metal.