Copper and aluminium prices surge as the Iran conflict tightens supply chains. Executives note a “super‑squeeze” that could keep prices high for years. Data centres and electric‑grid builders lift demand, while the Strait of Hormuz bottleneck curbs Middle‑East output. Prices hover near all‑time highs for copper and the Aluminium highest in four years today.

Valterra Platinum CEO Craig Miller warns the supply environment will tighten across metals, citing rising diesel costs and sulphuric‑acid price spikes. Goldman Sachs now projects a Copper deficit 640,000 tonnes and lifts its year‑end price target to $13,735 per tonne. This shift reflects mine shutdowns at Grasberg and Kamoa‑Kakula.

Aluminium output falls as Iranian strikes damage Middle‑East smelters and block alumina shipments. The sector’s output slump hits nearly 10% of global refined production. Analysts link higher fuel costs to a rush in renewable‑energy projects, which will lift copper and aluminium demand long term in the coming years.

Investors face a supply‑driven rally that could reverse if the war triggers a global slowdown. Yet current data shows little demand erosion, with cable makers willing to absorb higher costs for renewables. The market now hinges on whether supply shocks persist beyond the current conflict.