Bahrain aluminum giant says Iranian attack targeted its facility
BAHRAIN – APRIL 17: Aluminium ingots seen at the Aluminium Bahrain B.S.C plant in Bahrain, Tuesday, April 18, 2006. (Photo by Phil Weymouth/Bloomberg via Getty Images)
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Aluminium Bahrain, which hosts the world’s largest smelter of the metal, said on Sunday its facility was subjected to an Iranian attack as the U.S.-Israel-led war extended into a second month.
The company, known as Alba, said in a statement that the attack happened on Saturday.
“Alba is assessing the extent of the damage to its facilities and remains focused on maintaining its operational resilience and the safety of its employees,” Alba said.
The company had cut production capacity by 19% of its 1.6 million tons of annual output “as an operational measure to preserve business continuity amid ongoing supply and transit disruptions affecting the Strait of Hormuz,” the company said on March 15.
The production cuts have been adding to fears of a global shortage of the metal. Aluminum prices surged to four-year highs earlier this month before paring some of those gains. They remain 4.3% above their Feb. 27 levels.
While aluminum may be the most abundant metal on earth, it is crucial to the functioning of the world economy. It is an essential material across electronics, transport, and construction, as well as other industries such as solar panels and packaging.
LME Aluminum
Iran has been retaliating against U.S. and Israeli attacks that began on Feb. 28 by firing missiles and drones at its regional neighbors.
The United Arab Emirates said on Sunday its air defenses were dealing with the latest salvo of incoming missiles.
Houthis enter the fray
On Saturday, Iranian-backed Houthi fighters said they launched a missile strike against Israel, the first time the group has participated in the war.
Analysts have told CNBC that the Houthis could attempt to choke off maritime traffic through the Bab el-Mandeb Strait separating the Arabian Peninsula and the Horn of Africa — through which ships must pass to reach the Red Sea and the Suez Canal — adding to pressure on global trade.
On Saturday, Danish shipping giant Maersk, widely regarded as a barometer of global trade, responded to reports of drone activity and explosions that occurred at the Port of Salalah in Oman.
The Bab el-Mandeb Strait was estimated to account for 12% of seaborne oil trade and 8% of liquefied natural gas trade in the first half of 2023.
Iranian forces have already effectively shut down the Strait of Hormuz between Iran and the Arabian Peninsula, through which about 20% of the world’s oil supplies moved before the war.
Oil prices on Friday closed at their highest level in more than three years, as President Donald Trump’s pivot toward negotiations with Iran failed to ease market fears about the huge supply disruption in the Middle East.
U.S. crude oil prices rose 5.46% to close at $99.64 per barrel. International benchmark Brent crude prices gained 4.22%…
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