The escalating conflict involving Iran has severely disrupted the Strait of Hormuz, forcing Bahrain's Alba to cut 19% of its production and India's Hindalco to halt extrusion lines. As maritime instability leaves sailors stranded and ships burning, Japan has declared emergency measures, tapping national oil reserves and requesting urgent LNG support from Australia to stabilize its energy grid.
Aluminium Production Slashed
Bahrain's Alba and India's Hindalco have suspended significant operations due to maritime instability and regional warfare.
Japan's Energy Response
The Japanese government is releasing oil reserves and seeking increased LNG supplies from Australia to mitigate Middle Eastern disruptions.
Maritime Safety Crisis
Indian sailors report drone attacks and burning vessels near the Iranian coast, though some passage has been granted.
Bahrain's Aluminium Bahrain shut down 19 (%) — share of Alba's aluminium capacity taken offline of its production capacity on March 15 as disruptions in the Strait of Hormuz continued to ripple through global industrial supply chains. India's Hindalco Industries also halted production of extruded aluminium products, citing the war involving Iran, according to a company notice reported by Reuters. The twin production cuts signal that the conflict's industrial consequences are spreading beyond the immediate energy sector to downstream manufacturing. Both companies rely on supply routes that pass through or near the affected waterway, and neither had announced a timeline for resuming full operations as of March 15.
Oil loading operations at the Port of Fujairah in the United Arab Emirates restarted on March 15, according to an industry source cited by Reuters, offering a partial sign of stabilization in regional energy logistics. Fujairah sits on the Gulf of Oman and serves as a critical alternative export route for Gulf oil producers seeking to bypass the Strait of Hormuz. The resumption of loading operations came after a period of disruption tied to the broader conflict involving Iran. However, the situation in the wider region remained volatile, with reports of drone attacks and burning ships in waters off Iran as of March 14. Indian sailors were reported stranded off the Iranian coast, with crew members seeking to return home amid the ongoing hostilities, according to Reuters.
The Strait of Hormuz has long been regarded as one of the world's most strategically sensitive chokepoints for energy transit. Fujairah emerged as a key alternative export hub precisely because it allows tankers to load oil without transiting the strait. Alba began commercial operations in 1971 and is powered by gas-field-linked power stations, making it dependent on stable regional energy and logistics networks. Disruptions to Hormuz transit have periodically threatened global oil supply and triggered emergency responses from energy-importing nations in previous decades.
Iran allowed some Indian vessels to pass through the Strait of Hormuz as of March 14, according to an envoy cited by Reuters, though the passage appeared selective rather than a general reopening of the waterway. The partial easing did not immediately resolve the situation for all stranded crews, with Indian sailors still reported off the Iranian coast and seeking repatriation. Japan moved on March 14 and 15 to address its own energy exposure, deciding to release oil stocks from national reserves and asking Australia to increase its LNG output to offset supply risks stemming from the Iran crisis, according to Reuters. Japan's industry ministry made the request to Australia directly, reflecting the urgency with which Tokyo viewed the potential for prolonged disruption to energy flows. The United States separately urged buyers to source American energy supplies, according to Reuters reporting on the Japanese government's response. The combination of production halts in Bahrain and India, partial resumption at Fujairah, and emergency energy measures in Japan illustrated how broadly the conflict's effects had spread across multiple sectors and geographies within a compressed timeframe.