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EU will expand Iran sanctions against those who block Hormuz
Two EU diplomats have said that the?European Union?will expand the criteria?of their Iran sanctions to include the individuals responsible for?blocking?the Strait?of Hormuz.?The Strait?of Hormuz has been?largely closed for nearly two months, upsetting global energy and commodity markets. After U.S. and Israeli strikes against Iran began on 28 February, Tehran effectively shut down the Strait of Hormuz. This cut off roughly one-fifth the world's supply of oil and liquefied gas. After Iran briefly opened the strait on Friday, more than a dozen oil tankers passed through it. However, the ceasefire agreement is now in jeopardy after the United States seizes an Iranian cargo ship as part of its own military blockade. One diplomat said, "There was political agreement between ambassadors to change the criteria of Iran's sanctions regime in order to list people and entities who are?responsible for obstructing the freedom of navigation through the Strait of Hormuz." According to a second diplomatic source, the European External Action Service will need several weeks to prepare new listings. The EEAS is responsible for placing?people or companies under sanctions, while the European Commission deals with sector-wide restrictions. The 'EU designated Iran’s Revolutionary Guards as a terrorist organization in January and listed Iranian officials who violated human rights in March. Reporting by Julia Payne and John Irish, with editing by Kirsten Doovan.
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Gold falls to a one-week low due to tensions between the US and Iran, and a stronger dollar
The dollar and oil prices rose on Monday, after Iran threatened retaliation for the U.S. seizure of an Iranian cargo ship. As of 9:23 am EDT (1323 GMT), spot gold was down by 0.3% to $4,818.03 an ounce. It had hit its lowest price in the session since April 13. U.S. Gold futures for delivery in June fell by 0.8% to $4839.10. The U.S. Dollar rose to its highest level in over a week, before reversing to trade at 0.1% higher as renewed tensions between the U.S. and Iran caused uncertainty in the markets regarding the prospects of a peaceful deal. Benchmark 10-year U.S. Treasury Yields increased, increasing the opportunity costs of holding non-yielding gold. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said, "The Middle East situation has clearly escalated again. Our gold forecast has been tilted slightly to the downside due to increased risks of a sharp spike in oil price, which could lead to a higher dollar yield and bond yields." The ceasefire between Iran and the U.S. appeared to be in danger on Monday following the takeover by the cargo ship. Prices of oil jumped by around 5% amid fears that the ceasefire will collapse and because the Strait of Hormuz remains largely closed. Gold is considered an inflation hedge but demand for this non-yielding investment is reduced when global interest rates are high. The war in the Middle East could cause inflation to rise, causing rates to remain higher. Gold traders are selecting the negative daily elements for metals (higher 'dollars, yields). Technically, the next price target for June gold futures bulls is to close above solid resistance of $5,000, Jim?Wyckoff said in a Kitco Metals note. Other metals include spot silver, which fell 0.8% per ounce to $80.18, platinum, which dropped 1.2% to 2,077.35, palladium, down 0.3% to $1,554.48. (Reporting by Ishaan Arora in Bengaluru; Editing by Paul Simao)
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Congo peace project founder: First gold exports from the restive east will be in September
PeaceGold, a UK-based social enterprise, plans to export its first products from the'restive eastern Democratic Republic of Congo in September. This is despite last year's fighting that disrupted gold mining throughout the region. PeaceGold, a nonprofit organization in the area, was established in 2013 to formalise artisanal gold mining and to reintegrate ex-combatants back into regulated employment, such as gold mining. This is a means to reduce conflict. It was initially supported by Western donors, before moving to a commercial model. Greg Valerio, founder of PeaceGold, stated that the project currently works with 11 artisanal mines in Ituri province, which represent nearly 25,000 workers and miners. The project is positioning itself as a viable alternative to Congo's mostly illicit artisanal trade. Analyses show that more than half of Congo's annual gold production is believed to be illegally exported. The United Nations reported that the Rwanda-backed M23 militia and other armed groups seized additional territory last year in an offensive in eastern Congo which killed thousands. M23-linked rebels forced some cooperatives to temporarily stop operations even though they weren't directly overrun, Valerio stated. Although PeaceGold's model is well-supported by mining cooperatives, it can't trade gold because of its nonprofit status, Valerio explained. He said that it is finalising its regulatory approvals and operational systems in preparation for the commercial launch. This includes securing working capital financing from an unnamed UK financial partner who will?fund gold purchase at mine sites. The initial exports are expected to be slow and peak at 50 kilograms per month in year three. PeaceGold is aiming to keep 80% of the gold value within Congo, for the local infrastructure, compliance systems, and cooperatives. "Congo does not have a problem with gold - it is a system problem that we are trying fix." Maxwell Akalaare Adombila, Bate Felix, and Kirsten Doovan edited the report.
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Source: Board of Italy's Terna will meet to discuss CEO severance, says source
MILAN, 20 April - Italy's government-controlled power grid operator Terna is planning to hold an extraordinary board meeting within the next few days, according to a source close to the company. The meeting will discuss the severance pay of the outgoing CEO. Giuseppina di Foggia was nominated by the Italian Government as Eni's new chair, but she is not willing to give up an $8.6 million ($7.3 million) severance package offered by Terna. The source claimed that Terna's board did not discuss Terna’s case when they met on Monday. The Italian economy ministry said on Sunday that it opposed state-backed companies paying severance to executives who are resigning or whose contracts have expired. Before Eni's shareholders meeting on May 6, the issue must be resolved. Di Foggia will have to step down from his role as Terna CEO by then in order to assume the new position. Source, who spoke under condition of anonymity as the matter?is private said Di Foggia’s contract did include a clause that prevented her from receiving severance pay at the end or if she resigned early. This dispute is politically awkward at a time of rising energy costs due to the Iran War, which are a burden on both households and businesses. Italy's Treasury holds a 29.85% share in Terna via the state lender CDP. The ministry and CDP control Eni, with a combined shareholding of 33.1%.
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Is it time for us to give up on the hope that the Strait of Hormuz might open soon? Russell
The global oil market has been predicting that the Strait of Hormuz would be closed for a short time, and the disruption of crude and refined product supply will also be brief. This expectation is reflected in the price of crude oil futures. Although they have increased sharply since February 28, the prices are still far below the highs achieved in the aftermath of Russia's invasion of Ukraine in 2022. The paper crude market, in effect, has believed U.S. president Donald Trump's social media posts that have been made since the bombing began, that the?conflict?will be over soon and Iran will accept U.S. conditions for a peace agreement. The reality is not what's being said on social media, and the more the Strait of Hormuz stays closed, the worse the energy crisis becomes, particularly in Asia. Brent crude futures dropped 9.1% to $90.38 per barrel on April 17, following Trump's claim that the Strait of Hormuz is fully open. They jumped 6.9% to $96.59 in the early Asian trading on Monday when it became apparent that the waterway remained closed. Trump's April 17 social media post that the Strait of Hormuz was "fully opened and ready for passage" prompted the latest optimism. The waterway, which carried up to?20% of world crude oil and refined products prior to the conflict, had been "fully open and fully prepared for full transit." Trump's claim was backed even by some Iranian officials. However, the optimism was short-lived, as the Islamic Revolutionary Guards Corps of Iran moved to keep the Strait of Hormuz closed due to Trump's decision. The market should ask itself several questions about the current state of affairs. What does this mean? Does it mean that the United States has effectively closed the Strait of Hormuz? Would it reopen if Trump lifted the blockade on Iranian ports? Is there enough trust between warring parties for them to accept the principle that the Strait of Hormuz should be open to everyone? Are the Iranians willing to negotiate with an administration which has a history of reneging on agreements and is in charge in Iran? These are all valid points of debate. However, what really matters is the fact that the strait remains closed and that the threat of an attack will likely keep it so for the hundreds vessels that wait on either side. SUPPLY STRESS During this time, the supply chains for crude oil and refined products are more stressed. This is especially true in Asia which was the final destination of about 80% of the shipments that passed through the Strait of Hormuz before the conflict. The crude futures market has largely been driven by the daily news and the underlying belief that the conflict would be short-lived. However, the physical oil and refinery products have shown a more serious supply issue in the near term. Singapore, the Asian trading center, has seen extreme levels of refined products. Jet fuel is also at an all-time high. The price of a barrel ended at $204.13 on April 17. This was more than twice the close of $93.45 on February 27, just one day before the start date of the war. Gasoil (the building block of diesel) ended the day at $145.27 per barrel on April 17. This is up 59% from when the conflict began, but down from the $199.89 record set on March 30. The worst is yet to come for Asia, with crude oil shipments in the region falling sharply. According to Kpler, data from commodity analysts, Asia's seaborne oil imports were estimated at 20,62 million barrels a day (bpd), down from 22,36 million bpd a month earlier. Both March and April were well below the average of 26.76 millions bpd for the three months prior to the attack on Iran. This is a particularly worrying situation for countries which are important refining and fuel exporters to the region. Singapore's crude oil imports will be 388,000?bpd this April, down from 715 bpd last?March and 988,000 bpd the previous month. South Korea's crude oil imports were estimated at 1,68 million barrels per day (bpd) in April. This is down from 2,24 million in March and 2,74 million in January. Japan's imports in April are expected to drop to 921,000 bpd from 1.63m bpd and 2.16m bpd respectively in March. India is the only country that has bucked this trend. Kpler estimates April imports at 4,67 million bpd. This is up from March's 4.45 million, but still below January's 5,15 million. India was able to secure Russian crude oil to offset the loss in barrels from the Middle East. 1.64 million bpd arrived in April, an increase from 1.06 millions bpd. The problem with Asia's crude oil is that it's under pressure. It's likely that the processing rate of refineries will need to be reduced in the coming weeks. The real impact of Trump's war will only be felt when supply of refined products is more restricted. How long can the crude oil paper market maintain its hope that the conflict is going to end soon when reality appears to be moving in the opposite direction? You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
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Copper slips on US Iran ceasefire doubts, Strait of Hormuz Closure
Copper prices fell on Monday as the Strait of Hormuz was closed again to marine traffic. A fragile ceasefire between Iran & the United States looked in danger, reigniting fears over the economic growth. In open-outcry official trading, the benchmark three-month 'copper' on the London Metal Exchange fell 0.8% to $13,235 per metric ton. Last week, the metal gained 3.9% on the optimism that the ceasefire would hold and Iran's announcement on Friday that commercial vessels could now enter the Strait. The?U.S. The?U.S. then seized a cargo ship from Iran that was trying to blockade the strait on its own. Tehran promised to retaliate and refused to take part in further peace negotiations. Dollar-denominated commodities became more expensive to holders of other currencies. This impacted prices. LME Copper Stocks The, however, remains near a 12-year-high at nearly 400,000 tonnes. The?China market, the world's largest metal consumer, has a resilient demand, which helped limit any?downside. Shanghai Futures Exchange stocks of copper On Friday, the number of tons fell by 9.8% compared to last week and is down nearly 45% from March 13. Aluminium prices fell by 0.4% in other parts of the world to $3,552 per ton. This was a continuation of a 2.2% decline on Friday, when supply concerns were eased with the reopening of Strait of Hormuz. The International Aluminium Institute reported on Monday that primary aluminium production in the Gulf fell 6% in comparison to February. In a recent note, broker Marex stated that "Positioning (and) risk are] so much reduced in the metals industry amid the conflict between production concerns versus recessionary threat and demand destruction." Zinc fell 0.3%, to $3,436 per?ton. Lead also dropped 0.3%, to $1,957, and tin fell 0.7%, to $50,330. Nickel, the only base metal to rise, gained 0.3%, reaching $18,165, as fears of sulphuric-acid shortages hit local producers. They also warned about a new formula for pricing ore that would increase production costs. (Reporting and editing by Tasimzahid and David Goodman)
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Austria releases first batch oil reserves under IEA Plan
Austria released the first batch of crude oil from its reserves on Monday, as part of a coordinated plan that was agreed upon by member countries of the International Energy Agency last month in order to counteract 'the impact of 'the iran war. The IEA announced last month that Austria was one of 32 countries who had agreed to release a total of 400 million barrels from strategic oil stockpiles. This is the sixth coordinated release since the agency's inception in the 1970s. Austria's Economy Ministry, which is also in charge of Energy, announced that its first release was being carried out Monday, in coordination with countries it didn't name, and the involvement of partially-state-owned oil company OMV. The Austrian'share' (of the IEA releases) consists of 325,000 tonnes crude oil. In the initial phase, OMV plans to purchase 56,000 tonnes," said the Ministry in a press release. The amount released on Monday is about 2% of Austria's 90 day emergency reserves. The government has said that Austria is currently "well-supplied" with oil, but it will not be immune to any major disruptions in supply. "Austria does not separate itself from the global market." The statement quotes?Economy minister Wolfgang Hattmannsdorfer saying that if the international situation doesn't improve, it will have an effect on?Austria. Last week, he told reporters that Europe will feel the effects of reduced fuel supplies as early as next month. (Reporting and editing by Susan Fenton; Francois Murphy)
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Rusal's first-quarter losses blamed on high interest rates and the strong rouble
MOSCOW, 20 April - Russian aluminum maker Rusal blamed Monday high interest rates and a strong Russian rouble for its unspecified loss in the first quarter, which was recorded despite an astronomical rise?in prices of metal around the world. Last week, prices reached a four-year high as a result of a blockade of Strait of Hormuz. This is the route through which up 9% of global aluminium trade travels. The company stated in a statement released on Monday that "Rusal can't take advantage of current pricing conditions" as all margins go to European and North American companies. Rusal claimed that the "overly-strong" rouble and high interest rates on loans taken to modernise its two major Siberian plants were negatively affecting earnings. The company doesn't publish quarterly results. The company announced a?$500 million loss per year for 2025. Rusal has stressed that the company does not receive any resource rents in Russia, as 75% of the raw materials it uses to make aluminium are imported. The central bank of Russia raised its key interest rates to 21% by 2024, primarily in order to combat high inflation and economic overheating. It has reduced it to 15% but it still remains above the 12% level that businesses consider comfortable for resuming investment. The next central bank rate-setting session is set for April 24. Oleg Deripaska is the founder of Rusal and one of the most vocal critics against the central bank’s monetary policy. Last week, the rouble strengthened to its strongest level against the U.S. Dollar since May 2023, thanks to higher oil prices and government's temporary withdrawal. It is now up 7.3% so far this month. (Reporting Anastasia Lyrchikova, Writing by Gleb Brianski, Editing by Kirovan Donovan).
Serra Verde receives magnet rare earths price floors in US offtake agreement
According to a presentation on the deal, Brazilian rare earth miner Serra Verde will receive price floors for four of the rare earths as part of a 15-year contract with the U.S. government and private investors.
Some critics have suggested that price floors, designed to equalize the playing field between China and other dominant producers of rare earths, could distort the markets.
China produces 90% of the world's rare earths. The U.S. and Europe are also racing to develop their own domestic rare earths industries, which are vital for applications in electronics, defence, and energy transition. As part of an agreement worth billions of dollars, the U.S. offered MP Materials, the company that controls the only rare earth mine in North America a price floor.
Serra Verde announced on Monday that it had signed a 15-year contract to supply the entire first phase output of its plant to a special purpose vehicle, which is capitalised by both private and government sources in the United States.
The deal also includes price floors on the four rare earths that are needed to produce permanent magnets. These include neodymium (the main one), praseodymium (praseodymium), dysprosium (dysprosium) and terbium. They're used in electric cars, wind turbines drones and fighter planes.
The presentation stated that the?floor price of neodymium-praseodymium oxide (NdPr), often sold as a combined product, was the same as the MP Materials' $110 per kilogram. Since the U.S., the Chinese price for NdPr SMM-REO DIO has nearly doubled. The government set a floor price for MP Materials, which was last 795, 000 yuan (or $117/kg) on July 9, 2025 when the MP Materials deal was announced.
Serra Verde is rich in heavy rare Earths unlike other Western deposits. The deal included a floor price for dysprosium (at $575 per kg) and terbium ($2,050 per kg).
It added that the company and U.S. Special Vehicle will share 70 percent of the upside in the event the non-China Market Price rises above floor prices. (Reporting and editing by Paul Simao; Eric Onstad)
(source: Reuters)