The ongoing conflict between ​Israel and Hamas (the Palestinian Islamic Resistance Movement)​​ has introduced new uncertainties into global commodity markets, particularly affecting ​aluminum, carbon steel, and other key industrial materials. Below are the key factors influencing prices and supply chains:

1. Disruption in Energy Markets & Higher Production Costs

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• The Middle East is a major oil and gas producer, and prolonged conflict could lead to ​supply chain bottlenecks​ or ​higher energy prices.

• Aluminum and steel production are ​energy-intensivThe ongoing conflict between ​Israel and Hamas (the Palestinian Islamic Resistance Movement)​​ has introduced new uncertainties into global commodity markets, particularly affecting ​aluminum, carbon steel, and other key industrial materials. Below are the key factors influencing prices and supply chains:

   

  1. Disruption in Energy Markets & Higher Production Costs

  ​

  • The Middle East is a major oil and gas producer, and prolonged conflict could lead to ​supply chain bottlenecks​ or ​higher energy prices.

   

  • Aluminum and steel production are ​energy-intensive—rising oil and gas prices could increase smelting and manufacturing costs, pushing up metal prices.

   

  • If the conflict escalates and involves key oil-producing nations (e.g., Iran), ​Brent crude prices​ may surge, further inflating production and transportation costs.

   

  2. Shipping & Logistics Challenges

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  • The ​Red Sea and Suez Canal​ are critical for global trade, including metal shipments.

   

  • If Houthi rebels (aligned with Hamas) escalate attacks on shipping lanes (as seen in early 2024), ​freight costs and insurance premiums​ could rise, delaying material deliveries.

   

  • Alternative routes (e.g., around Africa) increase transit times and costs, potentially tightening supply.

   

  3. Long-Term Implications

  ​

  • If the conflict de-escalates, prices may stabilize. However, prolonged fighting could ​keep energy and freight costs elevated, sustaining higher metal prices.

   

  • Western sanctions on Iran (a Hamas supporter) could disrupt ​aluminum (Iran is a major producer)​​ and ​steel exports, tightening global supply.

  e—rising oil and gas prices could increase smelting and manufacturing costs, pushing up metal prices.

• If the conflict escalates and involves key oil-producing nations (e.g., Iran), ​Brent crude prices​ may surge, further inflating production and transportation costs.

2. Shipping & Logistics Challenges

​

• The ​Red Sea and Suez Canal​ are critical for global trade, including metal shipments.

• If Houthi rebels (aligned with Hamas) escalate attacks on shipping lanes (as seen in early 2024), ​freight costs and insurance premiums​ could rise, delaying material deliveries.

• Alternative routes (e.g., around Africa) increase transit times and costs, potentially tightening supply.

3. Long-Term Implications

​

• If the conflict de-escalates, prices may stabilize. However, prolonged fighting could ​keep energy and freight costs elevated, sustaining higher metal prices.

• Western sanctions on Iran (a Hamas supporter) could disrupt ​aluminum (Iran is a major producer)​​ and ​steel exports, tightening global supply.