The Arabian Gulf is home to around 7 million tons of aluminium smelting capacity, accounting for around 8% of global capacity. The disruption of shipments from the region could significantly impact the aluminium market, particularly in Europe. The European market imported around 21% of its primary and alloyed aluminium from the Middle East and Egypt last year, according to Trade Data Monitor. The physical premium European buyers pay above the LME price, aimed at covering freight, taxes and handling costs, also rose to $378 a ton, up $20 from the start of the week. Aluminium prices on the London Metal Exchange hit one-month highs at $3,254 a metric ton. The potential for increased energy costs is expected to rise if energy costs continue to rise.