Aluminum prices extended their retreat from a four-year high after US President Donald Trump signaled a possible end to the Iran war, which has disrupted supplies of the metal from the Middle East. The retreat follows a period of heightened volatility in commodity markets as geopolitical tensions threatened to choke off key supply routes.

Middle Eastern producers account for a significant portion of global aluminum output, making any disruption a major concern for manufacturers and traders. The Iran conflict had driven prices higher as fears mounted over potential supply shortages. Market participants had been closely watching developments in the region for signs of resolution.

With the prospect of de-escalation, traders have begun unwinding positions built on supply disruption fears. The move lower in aluminum prices reflects a broader reassessment of geopolitical risk in commodity markets. The retreat from four-year highs suggests the market had perhaps overreacted to the initial supply concerns.