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Aluminium drops to its lowest level since late March due to Iran deal
On Monday, aluminium prices dropped to their lowest levels in?two and a half months as a U.S. - Iran framework agreement aimed at ending their war improved prospects of deliveries from Gulf -producers. However, shippers remained cautious about transiting through 'the strait of Hormuz. By 1120 GMT the benchmark three-month aluminum on the London Metal Exchange had fallen 3.2% to $3,422.50 per metric ton, after having reached $3,408, which was its lowest level since March 30. U.S. officials and Iranian officials announced that they had reached a preliminary agreement to end the war and reopen the Strait of Hormuz. The pact sent oil prices down but left?the fate of Tehran’s nuclear program up to future negotiations. On Friday, the memorandum is expected to be signed in Switzerland. Reopening the Strait of Hormuz would boost prospects for exports of aluminium from the Gulf region. The region's metal producers, who account for 9% of the global supply, use this important waterway to transport their metal to international markets and to import raw materials. It could take several weeks for shippers to rebuild their confidence and navigation will only resume once safety has been assured. Alastair Munro is a senior base metals analyst at broker Marex. He said that the selloff in aluminium last week was also caused because the price fell below the 50-day average. This technical level, currently at $3.575, is regarded as 'key. The 100-day moving averge at $3,396 is the next level of support. The discount for the LME cash aluminium contract compared to the benchmark three-month contract is set to expire on Wednesday. Last week, the premium was $105 per ton. Other LME metals rose by 0.3%, to $13,734.50 per?ton. It had previously reached $13,893.50. This was the highest level since June 5. A fall in oil prices has eased inflationary fears fueled by energy and the dollar. LME zinc dropped 0.2% to $3.577.50. Lead rose 0.3% at $1.970.50. Tin gained 2.4% at $55,025, and nickel increased 0.9% at $17,980. (Reporting and editing by Shilpa Majumdar; Reporting by Polina Devtt)
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ETM is looking for other Spanish mines while it awaits Greenland Rare Earth resolution
Energy Transition Minerals hopes to expand in Spain's Galicia Province as it waits for a resolution of the?legal challenges regarding its massive rare earths project on Greenland. Daniel Mamadou said in an interview with? In an interview, Daniel Mamadou told? Mamadou stated that "Galicia has an ambitious plan to revive its mining industry." He added that up to 52 mines will be put out to tender for development. "We think that the Penouta operation can be at the heart of an expansion of Galicia... We might be able to?benefit from economies of size and position." ETM has not provided any details on the expected production levels or capex for the Penouta Project, but the International Tin Association stated that the mine would produce 351 metric tonnes of tin in concentrate by 2023. SEEKING a dialogue with Greenland ETM has the Kvanefjeld Project in Greenland. It is one of the largest undeveloped rare-earth deposits in the world. However, it cannot develop the project due to a government ban that will take effect on 2021. The company is expecting to appear in court later this year as part of its long-running dispute with the government regarding?the project. Mamadou stated, "We have also tried to push for a parallel track in dialogue which has so far not yielded any meaningful traction. But I think this is about to change." Greenland advertises itself as a mining destination that is "open for business", he said. Last week, the company said that exploration had identified new mineralised areas that contained uranium concentrations below the threshold of the government's ban on uranium. ETM has also been in dispute with China’s Shenghe Resources, its second largest shareholder with a 6 percent stake. This is after ETM terminated a deal signed by the two companies back in April that was supposed to see them jointly develop Kvanefjeld. Mamadou refused to comment when asked if ETM had ended its relationship with Shenghe in order to attract investors from the U.S., Canada and other Western countries as it sought a Nasdaq IPO. (Reporting and editing by Eric Onstad)
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Gold nears a one-week high following US-Iran Peace Deal
As a result of a tentative agreement between the U.S. and Iran, gold prices reached a new high. Oil prices fell as a result of the tentative peace agreement between the?U.S. As of 1044 GMT, spot gold increased 2.8%, reaching $4,336.49 an ounce, its highest level since the 9th of June. U.S. gold for August delivery rose 2.8% to $4358.00. U.S. officials and Iranian officials announced that they had reached a preliminary agreement to?end their war and reopen Strait of Hormuz. This pact sent oil prices 'falling, but left the fate of Tehran’s nuclear programme up for further negotiations. Shehbaz sharif, the Pakistani prime minister, said on X that the pact would be signed in Switzerland on?Friday. UBS analyst Giovanni Staunovo said that "market participants are pricing in rate increases due to lower oil prices which is lifting yellow metal." "In the near term, I would expect some consolidation until we get clarity from Fed later this week." The U.S. Dollar fell to its lowest level in 10 days, making bullion priced in greenbacks more affordable to other currency holders. Oil prices also dropped to their lowest point for over three months. Since the beginning of the U.S. and Israel's war against Iran, in late February of this year, gold prices have been under stress as the rising inflation risk resulting from oil has fueled expectations of longer-term interest rate increases. Gold is often seen as an inflation hedge, but it can lose its appeal when interest rates are high. The opportunity cost of holding the non-yielding assets increases. According to CME FedWatch, the markets have reduced their expectations of a U.S. interest rate increase in December to 53% from 69% the week before. Investors now look forward to the Federal Reserve policy meeting that will take place this week. Barclays is still positive on gold. They cite a number of factors, including the persistent inflation, policy uncertainties, and ongoing diversification of reserves. Singapore, meanwhile, will introduce an over-the counter gold clearing system, and?central banks gold-vaulting service, according to the deputy prime minister. The city-state is aiming to establish itself as a hub for gold trading. Silver spot rose by 4.1%, to $70.76 an ounce. Platinum gained 3.5%, to $1778.20, and palladium increased 4.9%, to $1346.36. (Reporting from Pablo Sinha, Bengaluru. Additional reporting by Katha Kaalia in Bengaluru. Editing by Louise Heavens, Susan Fenton.
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Swedish miner LKAB receives permit for fossil-free sponge Iron plant
?A Swedish environmental court approved on Monday?the state-owned mining company LKAB's plans to build a fossil free sponge iron plant? at its Malmberget site?in Gallivare. The demonstration factory 'will be an integral part of plans for "green steel" venture Hybrit. It is owned by LKAB and SSAB, as well as state-owned utility Vattenfall. Hydrogen and electricity will replace the coking coal that is traditionally used for steel production based on ore. The Land and Environment court in Umea stated that "permission can be given because it's possible to?limit the impact of the activity through conditions." A decision on investment is still pending in the Hybrit demonstration plant, which could produce up to 1,5 million tons of fossil free iron sponge per year. In 2020, a smaller Hybrit Pilot?plant will be opened in Lulea. The European green steel project is increasingly being delayed, scaled back or cancelled. This is because switching to hydrogen-based direct reduction iron systems and electric-arc furnaces, from coal-based blow furnaces, requires billions of euro in investments, and the hydrogen produced from renewable energy can be expensive. In a separate press release, LKAB CEO Johan Menckel stated that "our ambition is to gradually increase our competitiveness through further processing of our pellets into a fossil-free sponge iron while also expanding our?business in critical minerals". The ruling of Monday is appealable. Hybrid is one of two big green steel schemes that are available in Sweden where renewable electricity can be purchased at a low cost. In April, the?startup Stegra raised 1.4 billion euro ($1.6 billion) in additional funds to finish its hydrogen-based Steel Factory in Boden. The court said on Monday that it had also 'approved LKAB plans to continue mining operations, expand the tailings pond, and build a facility for?extracting apatite? from waste materials produced in?iron ore production. Apatite can be used to recover phosphorus or rare earths. In 2025, LKAB mines produced about 26 million tonnes of iron ore. $1 = 0.8614 euros (Reporting and editing by Anna Ringstrom, Clarence Fernandez).
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Let the oil flow!
Anna Szymanski is the Editor-in Charge of Open Interest. On?Monday, oil prices fell and global stocks rose after the United States reached a preliminary agreement with Iran. After more than three months of disruption, the memorandum of agreement should allow the?Strait of Hormuz to reopen. Donald Trump, the U.S. president and Shehbaz Sharif, the Pakistani prime minister announced that a deal was struck late Sunday night. The agreement, which is scheduled to be signed in Switzerland on Friday, leaves many questions unanswered. This may mean that market celebrations are premature. Below, I will go into more detail. Listen to the Morning Bid Daily Podcast - a special episode on the market impact of the U.S. Iran deal. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. 'LET THE OPEC FLOW' The exact terms of the U.S. and Iran MoU are unclear. Details on thornier topics - like Iran's nucleic programme - will be discussed in further negotiations after a 60-day period of ceasefire. Traffic through the strait is also uncertain to return to normal anytime soon. The President wrote on Twitter that the strait would reopen without tolls and that the U.S. Naval Blockade will be lifted, declaring "Let's let the oil flow!" The restarting of shut-in oil facilities and the reorientation of tankers is going to take some time. Shippers are also cautious about this whole episode. The markets are still optimistic. Brent crude dropped over 4% after the news of a U.S. Iran deal. It is now trading at $83 per barrel - its lowest price since early March. The announcement was well received by Asian equity markets, as both the Nikkei 225 and KOSPI, which are two of the biggest net energy importers, rose 5%. Wall Street futures in the US were up more than 1% by the time the bell rang, and the STOXX 600 index hit a new record high in Europe. The prospect of a reopened strait should temper inflation expectations and rate-hike betting, which have risen as the three-month conflict has caused energy prices to rise in economies all over the world. The headline CPI in the U.S. topped 4% for the first time ever in May. U.S. Treasury rates fell on Monday. The 10-year yield reached a new low and helped drag the dollar down. This news comes ahead of an important week for central bankers. It is possible that the possibility of the energy squeeze easing could help dovish policymakers, including the new Federal Reserve chair Kevin Warsh. Wednesday will mark the first meeting of the new Fed chair, and policymakers are expected keep rates at 3.5%-3.75%. Investors will closely monitor the messaging of the meeting to see how Warsh will lead the central bank, now that he is at the helm. Warsh has been widely viewed as favoring a looser policy in the short term. However, a growing number of FOMC Members have recently spoken out against the "easing bias". The news of the preliminary U.S. Iran deal will undoubtedly impact the debate. However, a series robust U.S. job prints, including May's nonfarm payrolls is likely to continue the heat. The Bank of Japan is first up on the central bank agenda this week. They will meet on Tuesday, and are expected to increase rates to 1% - a new high of 31 years. The Bank of England, on the other hand, is expected to maintain rates at their Thursday meeting. Investors will be watching Elon Musk's SpaceX closely to see what happens this week after the rocket maker recently listed its shares. This week, the G7 Summit, which began in France today and the May inflation releases for the UK and Euro?zone are also on the agenda. In the UK, there will be an important by-election on Thursday that could lead to a leadership battle between Keir starmer, Prime Minister of the UK and Andy Burnham, Greater Manchester mayor. Chart of the Day Brent crude dropped to its lowest level since early March, Monday. It fell over 4% to $83 per barrel following the announcement of the U.S. - Iran memorandum. The oil price had been hovering around $100/bbl despite the repeated military incidents in the Middle East. Watch today's events * U.S. May ?industrial production (9:15 a.m. EDT) The G7 Leaders meet in France Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and is dedicated to integrity, independence and freedom from bias.
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Indian shares rise on Gulf Peace Deal Tracking Global Rally
Indian shares closed higher Monday as they followed a global rally. Oil prices fell after the U.S. announced that it and Iran had reached a preliminary 'agreement' to end the conflict and resume traffic along the Strait of Hormuz. Shehbaz Sherif, the Pakistani Prime Minister, who served as a facilitator in these negotiations, announced that two parties will sign a Memorandum of Understanding in Switzerland this Friday. Investors can now find comfort in the fact that Iran's war is nearing its end, according to Gaurav Bhandari. Chief executive officer of Monarch Networth Capital. The benchmark Nifty?50 index rose 0.98%, to 23,853.90. Meanwhile, the BSE Sensex gained 0.97%, to 76264.33. Both gained about 3% and?3.3% respectively in two sessions. Gaurav Bhandari believes that Indian equities could have a good four to six months if monsoon risks recede. He expects Nifty 50 benchmark to reach the range of 27,000-28,000 by the end of the year. The index is down 8.7% for the year. The rupee rose 0.41%, or 94.71 dollars per Indian 10-year bond. Monarch's Bhandari stated that the $30 billion record of foreign outflows could begin to reverse with the recent RBI measures stabilising the rupee and inflation remaining under control. Fourteen out of the 16 major sectors rose. The small-caps and the mid-caps, on a broader scale, rose by 1.1% and 1,3% respectively. Larsen & Toubro, a major infrastructure company with significant exposure to the Middle East in terms of revenue, has gained 3%. Asian markets rose 2.7% while Brent crude fell 5.2% to $82.8 per barrel, its lowest price since March. India's lower oil prices, which are the third largest?oil exporter in the world, help to ease the pressure on the rupee, inflation and India's trade deficit. Oil-sensitive stocks rose, including refiners BPCL and HPCL, cement makers UltraTech Cement and ACC, tyre companies?MRF and CEAT, as well as?airline IndiGo. Aurobindo Pharma's stock fell by 4.7% after the U.S. Drug regulator raised serious concerns about its facility in Telangana.
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The US is still in need of nuclear fuel, but the highly dangerous plutonium will not solve this problem.
The Trump administration has begun talks with companies about converting Cold War plutonium to fuel for new nuclear reactors. This is part of a multifaceted strategy to make sure there is enough electricity to power the U.S. boom in data centers. The scheme is at risk of extensive delays and exorbitant costs for security, to the point that it could be unfeasible. This is due to the fact that plutonium can be extremely dangerous. In the wrong hands, a grapefruit-sized piece of this?material? could be used to create an atomic bomb as powerful as the one that the United States dropped in World War Two on Nagasaki. The dust from the radioactive element has a half life of 24000 years and is deadly to inhale. Ross Matzkin Bridger, who was responsible for securing the plutonium material around the globe at the U.S. Department of Energy's National Nuclear Security Administration, said: "This is weapons usable plutonium." "I am very concerned about the fact that taxpayers will be taking on a large part of the risk." Last month, the Trump administration announced that it had selected five companies to begin advanced discussions about developing 19,7 metric tonnes of different forms of plutonium. This includes?from dismantled nuclear warheads into reactor fuel. The U.S. government has had a difficult time storing plutonium. Now, the industry is rushing to find new ways to meet President Donald Trump's ambitious goal of quadrupling the U.S. nuclear power capacity by the year 2050. This is due to the surge in power demand for data centers. U.S. Representative Bill Foster (an Illinois Democrat, and the only physicist serving in the U.S. Congress) said that "my brain goes into high alert" whenever he hears of the proposal. Foster stated that the program would likely have sky-high costs for security to keep it "robust" against terrorism and that stakeholders should carefully examine the economics of such plants before moving ahead. The U.S. DOE stated that it expects the majority of employees at an facility handling plutonium to require the highest level of security clearances. A spokesperson for the Office of Nuclear Energy stated that the companies would be required to submit plans on material safety and security for stabilization, packaging and transportation of plutonium. The spokesperson stated that "DOE doesn't expect to pay for specialized protections against proliferation, health and security required to process excess plutonium." Selected Companies Oklo is a company that wants to use plutonium as fuel. They believe the material will be useful until the U.S. increases its domestic uranium supply, which includes a type of uranium called HALEU. This is a more enriched fuel than the fuel currently used in U.S. nuclear reactors. Bonita Chester said that the Oklo spokesperson would not have to pay large costs to the taxpayers if the plutonium fuel was used. This would avoid the need for a costly and risky government program to dilute the material and dispose of it. When the Trump administration announced its fuel plan last year, it halted all disposal efforts. Chester said that Oklo would "invest in transportation, the associated fuel manufacturing infrastructure, as well all licensing requirements including safety, security and safeguards", as well as any license requirements. She didn't provide any estimate of the costs. Energy Secretary Chris Wright served on Oklo’s board before joining the administration. Wright did not participate in the selection process of Oklo. He forfeited his unvested shares and "recused" himself from any matters relating to Oklo. Carl Perez is the CEO of Exodys Energy. The company plans to build an industrial facility on federal land in order to process excess plutonium and turn it into nuclear fuel. He said that no facility could obtain U.S. licenses and authorizations without addressing worker safety, overall safety and material safeguards according recognized standards. Greg Piefer is the CEO and founder of SHINE Technologies. He said that SHINE Technologies has extensive experience in handling and processing nuclear materials. Once plutonium produces power, it's no longer dangerous. He said that burning weapons-grade Plutonium was one of the responsiblest things to do. Standard Nuclear and Flibe Energy - the two other companies involved in the advanced discussions - did not respond when asked for comments. ROCKY HISTORY The history of the United States in converting plutonium into fuel has been rocky. In 2000, the U.S. agreed to convert it into MOX fuel to be used in reactors. In 2018, Trump's first government canceled the MOX program, saying that it would have cost $48 billion extra than the $7.6 million already spent. Oklo intends to use plutonium for its so-called "fast reactors" that it has developed and which it claims are more efficient than reactors expected to run on MOX. Oklo's calculations show that 1 metric ton plutonium could power 1 million American households for an entire year. The U.S. has only used fast reactors for research and not power generation. Ernest Moniz was the U.S. Energy Secretary under former President Barack Obama. He said that it is cheaper and easier to dilute this material and dispose of it. "I expect that the government will be paying for much of this, including the security around weapons-grade Plutonium." (Reporting and editing by Richard Valdmanis, Nia Williams, and Timothy Gardner)
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Brazil's farm auctions explode in the face of rural debt spiraling due to a changing climate
According to data collected by, auctions of farms seized?by creditors have risen across Brazil as distressed rural loans has increased to almost a fifth of all outstanding loans. Producers and analysts have reported that weaker grain prices, rising input costs and a soaring?interest rate, along with?the ravages of unpredictable climate change and?the rage of unpredictable weather, has led to the bankruptcy and seizure of more farms in Brazil. Brazilian farmers have to prepare for the possibility of a "super El Nino", which will likely damage their crop yields, further reducing their income. The rising fertilizer costs during the war in Iran has also prompted many Brazilian farmers to reduce their planting plans. According to a January study in the "NPJ Natural Hazards" journal of "Nature", Rio Grande do Sul in southern Brazil, which is one of the states most affected by rising farmer defaults, will experience catastrophic flooding by 2024 due to climate change and El Nino. According to data from the central bank, debts that were issued under Brazil's rural lending rules have more than quadrupled over two years, reaching 171.2 billion reais (about 33 billion dollars) at the beginning of this year. The central bank's data shows that bad debts increased to 19,6% of all outstanding farm loans, up from only 5,5% two years ago. Guilherme Campos is the secretary of agriculture policy at Brazil's farm minister. He said that debt in the agricultural sector was "at an extremely delicate time". According to Leilao Imovel, an aggregator website, Brazilian lenders are more aggressively seizing farmland for collateral on bad loans. This has led to a rise in the number of rural properties being auctioned. In 2025, the number of rural properties sold at auction jumped 30% to 14,219, a volume that was up from just 12,219 in 2015. Property seized in quicker out-of court procedures and auctioned almost doubled last year to 2,398. Andre Figueiredo, co-founder of Leilao Imovel, explained that the data are not directly comparable because Leilao Imovel will have surveyed 7% more auctions in 2025. He said that the largest auctioneers had been sharing data with each other since 2019. There was a clear trend showing that Brazil's farmers have faced greater financial pressures in recent years. He said that the volume of rural property (at auction) had increased dramatically. The hardest-hit regions were those focused on soybeans and grains. According to Serasa Experian, bankruptcy filings in?farm sectors increased by 56% in 2020 after having more than doubled in 2024. Climate Change: A Problem? Marcelo Pimenta, Serasa Experian’s general director of agriculture, stated that producers are still struggling to recover from a number of shocks. He said that bad weather and lower prices for farm exports (especially soy) are also affecting farmers' ability pay their debts. He added, "The future outlook is not good." Interest rates are high, and commodity prices are uncertain. Climate problems can cause a big shock. After extreme weather destroyed their crops, a farmer from Rio Grande do Sul who requested not to be named said that it was difficult to pay "unpayable" interest rates. Recently, a credit agency seized over half of the family farm. Climate change is evident. The farmer explained that from one hour to another, we couldn't produce due to too much sun or rain. The climate factor put us in this situation. Reporting by Oliver Griffin Editing and design by Brad Haynes, David Gregorio
Gold nears a one-week high following US-Iran Peace Deal
On Monday, gold prices reached a near-week-high as a tentative peace deal between the?U.S. Oil prices fell as a result of the Iran deal, which also eased concerns about a rate hike by the U.S. Federal Reserve. As of 0857 GMT spot gold was up 2.7% at $4,334.48 an ounce. This is its highest price since June 9. U.S. Gold Futures for August Delivery climbed 2.8%, to $4355.30. U.S. officials and Iranian officials announced that they had reached an agreement to end the war and reopen Strait of Hormuz. This preliminary pact sent oil prices down but left the fate of Tehran’s nuclear program up to future negotiations.
Shehbaz sharif, the Pakistani prime minister, said on X that the pact would be officially'signed' on Friday in Switzerland.
Giovanni Staunovo, a UBS analyst, said that "market participants are pricing in rate?hikes because of lower oil prices which is lifting yellow metal." "Near term, I'd expect some consolidation until we receive clarity from the Fed this week."
The U.S. Dollar fell to its lowest level in 10 days, making bullion priced in greenbacks more affordable to other currency holders. Oil prices also dropped to their lowest point for over three months.
Since the beginning of the U.S. and Israeli war against Iran, in late February of this year, gold prices have been under stress as the rising inflation risks fueled by oil has heightened expectations for higher interest rates.
Gold is often seen as an inflation hedge, but it can lose its appeal when interest rates are high.
The markets have lowered their?expectations of a 'U.S. According to CME FedWatch, the interest rate increase in December will be 53%, down from 69% the week before.
Investors will be watching the Federal Reserve policy meeting, which is being led by Kevin Warsh for the first time. Rates are expected to stay unchanged. Singapore, meanwhile, will introduce an over-the counter gold clearing system, and a central bank gold vaulting service, according to the deputy prime minister. The city-state is looking to establish itself as a hub for gold trading. Silver rose by 3.7% per ounce to $70.51, platinum gained 3.4% at $1,776.83, and palladium increased 4.4% at $1,339.76. (Reporting from Pablo Sinha, Bengaluru. Editing by Louise Heavens.)
(source: Reuters)