The ongoing Middle East conflict has triggered significant disruptions in the supply of aluminum, sulfur, and raw materials essential for critical mineral production, according to the International Energy Agency’s (IEA) ‘Global Critical Minerals Market Review 2026’ report. While the primary focus of the conflict has been on oil and gas markets, the closure of the Strait of Hormuz has severely impacted mineral and metal markets. Middle Eastern countries account for approximately 8% of global aluminum production, and production restrictions at several regional plants have intensified market pressures. The region also supplies about a quarter of the world’s sulfur, with half of global seaborne shipments passing through the Strait of Hormuz. Sulfur is a critical input for producing sulfuric acid, which is vital for fertilizer manufacturing and processing a range of critical minerals, including copper, lithium, cobalt, nickel, and rare earth elements. The supply disruptions prompted China to restrict sulfuric acid exports in May 2026, further straining supply chains in both the critical minerals and fertilizer sectors. The resulting rise in sulfuric acid prices has increased production costs for industries reliant on critical minerals, with sulfuric acid expenses in some cases surpassing energy costs to become the largest component of production expenses. This development underscores the vulnerability of global critical mineral supply chains to geopolitical instability and highlights the strategic importance of the Strait of Hormuz for mineral trade.
Source and Credit: trend.az
