#Qatar curtailment exacerbates Iran war aluminium fears | Reuters

Qatar curtailment exacerbates Iran war aluminium fears | Reuters

The impact of the U.S.-Israeli attacks on Iran on the aluminium sector deepened on Tuesday after ‌QatarEnergy said it was halting production of the metal.

The state-owned company had already suspended production of liquefied natural gas on Monday following Iranian drone attacks on its Ras Laffan complex, sending natural gas prices soaring.

In a statement on Tuesday, it ​said it was also stopping production of some downstream products, including aluminium.

QatarEnergy holds 51% in ​Qatar Aluminum Manufacturing Co, one of the shareholders in the 648,000-metric-ton-per-year Qatalum smelter alongside ⁠Norway's Norsk Hydro (NHY.OL), opens new tab.

IMPLICATIONS FOR ALUMINIUM PRODUCTION ARE UNCLEAR
Hydro said QatarEnergy supplied gas to Qatalum, but that the "specific ​implications for aluminium production at Qatalum are currently unclear." Qatalum did not immediately respond to a request ​for comment.

Aluminium prices on the London Metal Exchange rose as much as 3.8% to a one-month high at $3,315 a ton before easing to $3,250 as of 1541 GMT.

European aluminium premiums, paid on top of LME prices for physical metal, have risen ​to $378 a ton for March and $428 for April , the highest levels in 3-1/2 years. Qatar accounted for ​less than 1% of the EU's primary aluminium imports in 2025, according to data from Trade Data Monitor.

Still, traders said ‌the ⁠Qatar stoppage raised fears others in the region would also soon stop producing. Gulf Cooperation Council countries supplied 8% of the world's aluminium last year.

"The region is both a significant producer and exporter of aluminium by sea and also relies on imports of bauxite and alumina to keep smelters running," Morgan Stanley said ​in a note.

Kpler's lead ​metals analyst Ben Ayre ⁠put the GCC's average monthly alumina imports at 680,000 tons. Only 61,000 tons of alumina on the water bound for the region's smelters are already in the ​Gulf, he said. Another 57,000 tons destined for Oman would not need ​to pass through ⁠the Strait of Hormuz, which is effectively closed for shipping.

"There is an additional 377,000 tons en route and we have 160,000 tons lined up to depart Australia later in the month," Ayre said.

Meanwhile, almost 10% of ⁠aluminium inventories ​in the LME warehousing network , 45,325 tons, were ordered to ​be removed from storage in Port Klang, Malaysia, exchange data showed on Tuesday, suggesting traders are looking to cash in on supply ​shortages.

Middle East jitters weigh on most regional markets; energy shares cheer #Saudi | Reuters

Middle East jitters weigh on most regional markets; energy shares cheer Saudi  | Reuters

Most Gulf stock markets ended lower on Tuesday, with the Qatar benchmark extending its decline after ​the country halted liquefied natural gas production amid an escalating air war in the region, while Egypt slipped for a third day.

Israel broadened its ‌campaign with new strikes on Iran and Hezbollah, while Tehran launched missiles and drones toward Israel, several Gulf states and a British air base in Cyprus, raising concerns of a prolonged conflict.

Qatar's state-owned QatarEnergy, 82% of whose clients are in Asia, was set to declare force majeure on its LNG shipments after Iranian drone attacks on ​facilities in the sprawling Ras Laffan complex.

The country's benchmark index (.QSI), opens new tab trimmed early losses to close 0.7% lower, pressured by a 1.9% ​drop in Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets.

Among gainers, petrochemical firm Industries Qatar (IQCD.QA), opens new tab advanced 2% and ⁠Qatar Fuel (QFLS.QA), opens new tab was up 1.9%.

Risk-off sentiment still dominates the Qatari exchange, though losses have eased compared with the sharper declines in earlier sessions. ​Any rebound will likely hinge on how regional tensions evolve and whether disruptions inside Qatar persist, said George Pavel General Manager at Naga.com Middle ​East.

Qatar condemned Iranian attacks on its territory and said, in a letter to the U.N. Secretary-General and the president of the Security Council on Monday, that it reserved the right to retaliate.

In Muscat, the index (.MSX30), opens new tab retreated 1.5% in broad declines, while the Kuwaiti index (.BKP), opens new tab reversed early losses to finish 0.9% higher.

Gulf Cooperation Council sovereign wealth funds can ​play a pivotal role in supporting local equity markets by boosting liquidity and deploying additional capital to strengthen investor sentiment. This is an ideal ​moment to channel that support through fund-of-funds structures, said Samer Hasn, senior market analyst at XS.com.

Meanwhile, oil prices rose for a third straight day on Tuesday as ‌threats to ⁠shipping through the Strait of Hormuz heightened fears of supply disruptions.

Iran's Revolutionary Guards commander said on Monday that the strait was closed and warned that Iran would set on fire any ship attempting to pass, Iranian media reported.

Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.7%, lifted by a 0.9% rise in Rajhi Bank and a 1.9% climb in oil major Saudi Aramco (2222.SE), opens new tab, while petrochemical maker Saudi Basic Industries Corp (2010.SE), opens new tab, in which Aramco owns 70%, added 4.2%.

The Saudi ​energy index (.TENI), opens new tab advanced 1.8%.

Among individual stocks, ​Saudi budget carrier flynas (4264.SE), opens new tab extended declines ⁠to a third session, losing 2.8%, as air travel in the region was hit.

According to Hasn, the Saudi market is showing unexpected resilience despite the rapid and sudden spread of war, which is affecting various essential ​infrastructure sectors across the GCC.

"Investors appear to be banking on the hope that the conflict will not ​be prolonged, alongside expectations ⁠of extensive Saudi government support for the affected sectors."

Elsewhere, Bahrain's index (.BAX), opens new tab eased 0.3%.

Meanwhile, UAE's Securities and Commodities Authority said the Abu Dhabi Securities Exchange and the Dubai Financial Market would remain closed on Tuesday, citing its supervisory and regulatory mandate over the country's capital markets. They were closed on March 2 too.

Outside ⁠the Gulf, ​Egypt’s blue-chip index (.EGX30), opens new tab extended its loss to a third consecutive session and slid 2%, ​with most stocks declining.

Egyptian equities extended their slide, with the market's ongoing correction deepened by regional instability. Sentiment remains weighed by risks to foreign direct investment, Suez Canal revenues, tourism, ​and gas supplies, said Pavel.