Progress Made in Middle East Peace Talks as Aluminum Prices Hit Three-Month Low and Supply Shocks Gradually Resolve

(1) Driven by expectations of progress in Middle East peace talks, the market anticipates a gradual recovery of aluminum supply in the region, and aluminum prices have fallen to their lowest level in three months. (2) The United States has granted Iran a 60-day oil sales permit, providing Iran with economic cushioning, while both sides continue negotiations for a permanent peace agreement. (3) Since the beginning of this year, the war in the Middle East once stifled the production and export of local aluminum products, pushing aluminum prices up by a cumulative 11%. (4) However, one of the largest supply shocks in the history of the aluminum market has been successfully resolved by smelters in the Persian Gulf region through inventory replenishment and the risky practice of transporting goods through the Strait of Hormuz.