On Saturday, Iran carried out strikes on industrial facilities in the Persian Gulf countries. Enterprises of two of the region’s largest aluminum producers – Emirates Global Aluminum (EGA) in Abu Dhabi and Aluminum Bahrain – came under fire. Both companies confirmed infrastructure damage and several employees were injured. The incident occurred amid active negotiations by the Trump administration about a possible ceasefire.
This is a new blow for the global aluminum industry. Since the beginning of the military operation, exports from the region have been virtually paralyzed due to the blockage of the Strait of Hormuz, through which a significant part of the world supply. Now, direct destruction of production facilities has been added to the logistics collapse. According to Goldman Sachs, this will increase pressure on world prices and hit the global economy.
EGA, the region’s largest aluminum producer, reported significant damage at the Al Taweelah site in the Khalifa Port industrial zone. Several employees were injured. The company has not yet specified whether the plant’s operations have been suspended. In 2025, Al Taweelah produced 1.6 million tons of metal.
EGA’s second plant is located at Jebel Ali Port in Dubai. Both businesses are part of infrastructure that the UAE has developed over decades as it seeks to diversify its economy beyond oil. Now this industrial base is in the zone of direct destruction.
Aluminum Bahrain, another key player, has also begun assessing the damage.
Amid the attacks and blockade of Hormuz, aluminum prices, which had already been rising before the start of the conflict, continued to rise. Traders and industrial users expect the market to tighten and global inventories to tighten. The Middle East accounts for about 9% of global aluminum production, and much of this is now locked within the region.
EGA was able to mitigate the impact on customers by metal reserves, which the company held abroad at the time of the outbreak of hostilities. This reserve was enough to temporarily cover the needs of customers.
The paradox is that EGA is deeply integrated into the American economy. The company is among the largest investors, participating in the UAE’s pledge to invest $1.4 trillion in the US over a decade. It is building the first new aluminum smelter in decades in Oklahoma and owns a processing plant in Minnesota that is benefiting from high domestic prices propped up by Donald Trump’s tariffs.
But the company’s own industrial assets at home are now under attack. The attack on Al Taweelah clearly demonstrates how regional conflict turns key parts of global supply chains into hostages of war.
Source: Bloomberg News
Image: Emirates Global Aluminum
