Aluminum prices could rally to higher highs.

That’s because Iran attacked two Middle Eastern producers over the weekend, raising fears of a massive supply crisis. In fact, Iranian strikes on major aluminum plants in the UAE and Bahrain have sparked a 6% surge in aluminum prices on the London Metal Exchange, threatening global supply. These attacks targeted key suppliers, including Emirates Global Aluminium (EGA) and Aluminum Bahrain (Alba), aggravating a supply crunch in the Middle East.

Not helping, 9% of global aluminum supply comes from the Gulf, and, according to CNBC, “most firms there have been unable to export the metal beyond the region since Iran effectively closed the Strait of Hormuz.”

And, if the damage is long lasting, we could easily see tighter supply and higher prices. “Joyce Li, commodities strategist at Macquarie Group, told CNBC over email that their base case before the attacks assumed a cut to the current running capacity of approximately 20%, which amounts to roughly 800 to 900 kilotons of production loss in 2026,” added CNBC.

So, what’s the best way to gain exposure to aluminum?

One way is to invest in stocks, such as Alcoa (AA), Century Aluminum (CENX), Constellium (CSTM), and Kaiser Aluminum (KALU). All of which are already exploding higher.

And, you can jump into exchange-traded funds (ETFs), such as:

Headlines are leading traders to the slaughter. If you want the tools to outsmart the herd and fund your financial goals, click here.

iShares US Basic Materials ETF (IYM)

With an expense ratio of 0.38%, the iShares US Basic Materials ETF (IYM) offers exposure to companies involved in the production of raw materials, including metals and chemicals. Some of its 38 holdings include Linde, Newmont, Nucor, and Steel Dynamics. It also pays a dividend, last paying just over 46 cents per share on March 20.

iShares MSCI Global Metals & Mining Producers ETF (PICK)

With an expense ratio of 0.39%, and a yield of 1.42%, the iShares MSCI Global Metals & Mining Producers ETF (PICK) offers exposure to companies that are involved in the extraction and production of diversified metals, aluminum, steel, and precious metals and minerals. Some of its 245 holdings include BHP Group, Rio Tinto, Glencore, Nucor, and Steel Dynamics. It also just paid a dividend of just over 77 cents a share on December 19. Before that, it paid out a dividend of just over 70 cents on June 20, 2025.

Sincerely,

Ian Cooper