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The 5-week U.S.-Israeli air campaign has destroyed some of Iran's most treasured monuments.
The ancient city of Isfahan was shaken by a first wave of blasts. Minarets and domes were swaying in the famous square. Two days later, another bombing in Isfahan's city center left the 400-year-old palace complex covered with debris. The Israeli airstrikes on March 7 and 9 shook monuments in Naqsh-e Jahan Square and Chehel Sotoun Palace - two of Iran's most prized cultural complexes. Plaster and broken tiles still crunch underfoot in some places, two weeks after the airstrikes. Rasoul Mosavi said, "These buildings felt like a part of us", his head still covered in gauze after the explosion. He guided journalists through the museum, where he worked as a guard for 16 year. "This place is dear to me." The intended target was less than 200 metres away from the roof: the Isfahan Governor's Building, which had been partially destroyed but appeared empty when struck. Before the U.S.-Israeli war on Iran ended, journalists had rare access in March to the palace, Naqsh-e Jahan Square and its surrounding area, and two palaces in Tehran. The journalists saw for themselves how the war had damaged Iran's historical sites, some of which are protected by an international treaty administered under the U.N. cultural agency UNESCO. The journalists reported damage to 11 historic buildings. Experts who monitor the impact of war on world heritage sites confirmed damage to the Trans-Iranian Railway in Isfahan and the Jameh Mosque, as well as a 1,800-year-old castle near prehistoric caves where humans settled as far back as 63,000-years ago. In the two decades that?the United States, its allies, and their coalition partners fought in Iraq, Syria Libya, and Afghanistan on ground and by air, there were no damage done to sites of cultural heritage listed by UNESCO at the time. UNESCO is yet to send teams to sites listed in its register and relies on satellite imagery to assess 'the damage. UNESCO has'verified' damage to seven sites, including two that are on the international list, four cultural properties with national significance, and a religious place. UNESCO said it had not been consulted before or during war, but that "all parties to the conflict" were provided with coordinates for critical sites. The world body called on all parties to conflict to respect international law and take all necessary steps to protect cultural heritage. The damage ranged from broken glass, cracked tile and shook foundations to shattered walls and shattered tiles. Bomb shock waves that radiated out at a speed nearly 20 times greater than sound were the main culprits. According to Wes Bryant a former U.S. Air Force targeting specialist, those waves can cause serious damage to structures up to a kilometer from the explosion itself. Israel Defense Forces confirmed that they had targeted the Governor's Office in Isfahan. This is located adjacent to the UNESCO listed palace complex. The Israeli Defense Forces also confirmed that it struck a base of the Islamic Revolutionary Guard Corps on March 7, a little more than a kilometer away from the historical sites. IDF stated that the IDF operated in accordance with International Law and only targeted military objectives. Israel's attacks, according to the statement, "were generally based on reliable information, operational verification and established approval processes and, when appropriate, legal review and were carried out conformément to applicable international law." Eight experts in Middle Eastern Archaeology and Preservation of Heritage Sites said that the reporting shows a shift in U.S. Targeting Practices and Priorities away from Protecting Internationally Recognized Historical Landmarks. The Pentagon has changed its policies to protect cultural sites after two decades of widespread criticism over an American military installation in the ruins the ancient city Babylon. Bryant stated that in recent wars historical landmarks were included on the "no-strike lists". He said this was because they had to be considered a military necessity such as saving the lives of soldiers and also receive high-level approval from officials, including the White House. The sites that were damaged included the Golestan Palace in Tehran, the Naqsh-e Jahan Square in Isfahan and the Chehel Sotoun Complex. These sites have been confirmed by visits. Mehrnoush Soroush is the director of Center for Ancient Middle Eastern Landscapes at University of Chicago, which tracks damaged?cultural site in Iran. Her team has also confirmed damage to Jameh Mosque, in Isfahan, and the Andimeshk Railway Station along the Trans-Iranian Railway. This UNESCO-listed route connects the Caspian Sea, in the northeast, with the Gulf. Soroush as well as UNESCO confirmed the extensive damage to Falak-ol-Aflak - an ancient fortress located in the Khorramabad valley of western Iran. Photos of window damage were verified. Israel's military warned Iranian citizens to avoid trains in early April, and Israel's official statement said that the Qom rail bridge was damaged to stop Iran from moving weapons. Iran's UNESCO rep provided a list to the U.N. Cultural body of 134 cultural sites that it claimed were damaged by war. Despite not being listed on the UNESCO list, these sites are among Iran's most popular tourist destinations, bringing millions of tourists every year. Only the railway was directly affected by the UNESCO site. Iran has marked its culturally most significant sites, such as the bazaar of Isfahan and the fortress located in the Khorramabad Valley with large blue shields. The Sa'dabad Complex, in Tehran, houses 18 historic palaces. The shields are an internationally recognised symbol that indicates their protected status as cultural property. It's unbelievable. This was something I would never have imagined in my wildest dreams. Farshid Emami is an associate professor in the Department of Art History at Rice University, Texas. He has written a book about Isfahan Architecture. The Pentagon has declined to comment. Operation Epic Fury, the Trump administration's name for its war against Iran, was designed around four key objectives: destroy Iran’s ballistic missiles; demolish production facilities; sink their navy and weaken their proxy forces. "Unlike Iran the United States doesn't target civilians." The gloves are off The 1954 Hague Convention is a treaty that protects cultural heritage and explicitly protects Isfahan sites during war. International law considers the intentional targeting of cultural property to be a war crime. Any strikes against nearby targets should be carefully weighed up against any possible damage. UNESCO's designation only covers a minority of the culturally significant monuments and buildings in a country. Some countries place more importance on their landmarks being listed by this U.N. agency. Iran has 27 sites listed, compared to 55 in Italy and just one in Uganda and Costa Rica. The most prominent example of damage in Iraq during a U.S. led war was the ancient city Babylon. It was listed as a UNESCO world heritage site by 2019. Coalition forces used Babylon from 2003 to 2004 as a base, digging trenches at the site and installing infrastructure. Saddam Hussein had already damaged it before they arrived. Iraq also suffered cultural losses due to ground combat. These included the destruction of Mosul's old city and the looting of antiquities after the U.S. invasion. Trump withdrew America from UNESCO twice, in 2017 and 2025. He cited its support for divisive, woke cultural and social issues. The 2025 action will take effect this year. In 2017, U.S. coalition forces led by the United States bombed Raqqa's walls, which date back to the 8th century, as a way of supporting ground troops that were fighting ISIS. Stephennie Mulder is a professor of Islamic architecture and art at the University of Texas at Austin. She said, "As terrible as it was, I feel like that time felt like a golden age compared to the current situation, where the gloves have been taken off and no one cares." She is one of more than 400 researchers and scholars who signed the letter circulated in mid-April, condemning the destruction to Iranian cultural sites by the United States. Israel reported damage caused by an Iranian attack in Tel Aviv’s White City. This is a collection modernist buildings with Bauhaus influences from the 1930s, which are also listed on UNESCO's list. The U.N. said that it was conducting an investigation. Pete Hegseth, the U.S. Secretary of Defense, has dismissed military engagement rules in large part. He claims that there will be "no mercies" shown to enemies. In April, President Donald Trump said that Iran's entire civilization would be destroyed if the country did not end its conflict. Both did not make a direct mention of heritage sites. CULTURAL JEWEL Isfahan, even by Iranian standards, is a cultural gem, compared to Rome, Athens, or Kyoto. Isfahan is also home to a nuclear site in Iran. It sits on a vast plain of the high Iranian plateau, and straddles a river called Zayanderud. This Persian word means "life-giving". The river divides the city, with the northern part being older and home to historical sites and the southern section, which has wealthier neighborhoods and more modern residential complexes. Residents gathered around the monuments and heritage sites near the Chehel Sotoun Palace in the Naqsh-e Jahan Square. This square is the largest in the city, measuring 14 soccer fields. It is also one of three UNESCO World Heritage Sites. Isfahan, like many other large cities in Iran, was engulfed by protests this year when anger over dire economic circumstances boiled over. The protests led to the largest crackdown since 1979's Islamic Revolution, which resulted in thousands of deaths, injuries, and prison sentences. Trump's desire to see the Iranian regime overthrown was cited as one of the main reasons for the launch "Operation Epic Fury", which took place in late February. According to video footage, some of the Isfahan demonstrations and clashes between government forces and protesters took place in the Naqsh-e Jahan Square, and the bazaar was briefly closed during a general. Israeli bombs targeted IRGC targets on March 7th, 300 meters away from the 400-year-old Si-o-se-pol Bridge over the River. Former residents of Isfahan claim that the complex was used as a detention facility by the elite military force. Israel's military admitted that the base was targeted. Witnesses said that when bombs rained on the IRGC, blast waves reverberated a kilometer from the site, shaking Naqsh-e Jahan Square. On March 9, two days later, another volley of bullets aimed at the governor's offices shook again the square and the adjacent Chehel-Sotoun Palace Complex. Mosavi, an elderly security guard was wrapping up his shift in the Museum of Decorative Arts. The museum was converted from a '17th century royal palace. He said that he was at work because of a "queasy inner feeling". Only 10 minutes later, twin explosions followed jets flying overhead. The museum's windows were mostly shattered. The main hall's ceiling collapsed revealing the bones of the building. Mannequins dressed in traditional Iranian clothing were surrounded by plaster and glass. The entire top floor of the Governor's Office, located less than 200 metres away, has been destroyed. The strike did not injure the governor. The team was not allowed to enter the building but met the governor at a café in the bazaar. Mosavi displayed twisted gray metal fragments, which he and his employees referred to as shrapnel, at the entrance of the Museum. The fragments were similar to those found at the Sa'dabad Complex in Tehran, an 18th century site that was struck by bombs in March. According to the U.S. Committee of the Blue Shield and two former military targeting experts, heritage sites like schools or hospitals are usually on the no-strike list compiled and maintained by military and intelligence agencies. According to international law, any collateral damage must be proportional to the expected military benefit of striking a site close to a heritage or cultural site. Patty Gerstenblith is the head of the U.S. Committee of the Blue Shield. The group has trained the American military to protect cultural sites in wartime. Gerstenblith, along with other experts, said that when Mosul and Raqqa was reclaimed by Islamic State the Blue Shield committee prepared and distributed informational material to the troops before the event. She added that without more information she couldn't judge if the Iranian strikes were appropriate from a military standpoint. According to a document, Isfahan heritage officials made an initial assessment of the damage caused by the bombings at Naqsh-e Jahan Square. It was impossible to independently verify those findings. Emami, an architectural historian from Rice University, stated that a thorough investigation was needed to confirm structural damage. The bombings that occurred in Ali Qapu Palace early in March caused a tremor on a terrace which overlooked the large square, the music chamber, the marble fountain and the 18 wooden columns. Heritage officials took pictures of the crumbling wall, the cracks in the building's body, and the shattered glasses. In the initial Iranian assessment, more than 70% the glass of windows and doors were broken and the plaster on two porches was separated from the main structure. Ali Bordbar ran outside of his small carpet store in the bazaar when the bombings occurred on March 7. The bombings caused the two minarets at the southern edge to shake. Bordbar said that it took hundreds of years for this site to be built. In a single moment, it could be destroyed. The employees of the Naqsh-e Jahan complex brought in a bag filled with blue tiles that fell off when they visited the Shah Mosque. The Iranian damage assessment for the Isfahan Heritage Sites included a picture of a crack on one of the walls of the mosque. A silver engraver at the bazaar stated that the economic effects of lost tourism revenues due to war are as devastating as the property damage or shattered glass. The engraver stated, "This war paralyzed our nation." The main alleys of the bazaar were nearly empty during the two days that I visited in late March. Only a few young men ran and cycled through them. Artists and musicians were setting up their stands in the bazaar, and some visitors started to arrive. Iranians avoid speaking with foreign journalists for fear of being arrested or worse. Some expressed their dismay at the destruction of historic sites while others had more nuanced opinions. Saeed, 32, who runs a sweets shop in the bazaar said that airstrikes had broken all the windows and the glass in his well-organized sweet shop. He declined to give his opinion on the war, as did many Iranians. He said, "We're waiting for a good ending." I WAS SHOCKED The Golestan Palace is a centuries-old complex of royal buildings in Tehran. It's located just a few steps from the city's famous old bazaar. The protests began last December with the shopkeepers of the labyrinthine market. The 'labor strikes' quickly spread from the heartland of Iran’s economy, the old bazaar, to universities and cities throughout the country. The next step was a brutal Iranian crackdown. This was followed by weeks of bombing and the assassination of the supreme ruler in the 'opening salvo of war. The night of March 1, American forces and Israelis struck Tehran's judicial building adjacent to the ancient Palace, which was a sea debris with wooden artwork and mirrors falling from the ceiling. As journalists stepped on glittering glass shards, a sharp cracking noise echoed from the ceiling of the palace. UNESCO has expressed its "concerns", over the damage to the site. The morning of the attack was described by an archeology worker who had worked at the palace for almost 30 years. She cried as she recalled the experience. She said, under condition of anonymity, "I was shocked and frozen to the spot in front of all that glass when I first came here." She said that the blast waves had caused the most damage to the space in the throne. The hall of mirrors, a few meters away was a sea of glass, which had previously adorned the walls and ceilings, as well as the pillars, of the room. The team was denied access to the third part of a palace, which employees claimed had been damaged in blasts during the strikes on March 1. This area is prohibited, according to them, because it is adjacent to the government office that was targeted by the U.S. and Israel attacks. This building is associated with the Iranian judicial authority. Tehran's judiciary is known for sending young Iranian men and woman who dared to criticize the regime to prison and even executions. Nearly 300 meters from the palace was the judicial building which came under attack. The female employee who visited the palace two weeks after the destruction expressed her fears of damage that was invisible to her. The employee stated that two employees were injured, but only in a minor way. She suddenly announced that everyone should leave the room immediately after 15 minutes. She ran ahead, pointing at the ceiling, which she warned could collapse at any time. Maggie Michael M.B. (Reporting) Pell, Mari Saito, and Ryan McNeill. Additional reporting by Mayaan Lubell. Alaa Al-Marjani, Haider Kadhim Nour. Edited and produced by Lornant Hinnant, Sarah Cahlan.
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Winemakers on the Greek island of Santorini try to adapt to heat, drought and extreme temperatures
Yiannis Boutaris, a winemaker on the Greek Island of Santorini gestures at a dried up 'kouloura vine' trained into a 'basket' shape to protect?grapes against the scorching summer sun. The plant survived for 90 years, but finally died from heat and drought. This plant's demise highlights the growing problem in Santorini where, between 2023-2025, low rainfall and searing heat have led to increased grape prices, reduced wine production, and intensified water concerns. The lack of rain combined with the lack?of cultivation in the past couple of years led to the old vines dying, said Boutaris. His winery owns its vineyards and buys grapes from other vineyards including the one with the dying vines. "We are adapting our vineyard to new circumstances, not abandoning tradition." The Ancient Vinyards of Greece Try New Techniques Boutaris is a sixth generation winemaker and runs the Domaine Sigalas Winery. It's now part of Kir-Yianni Family of Wineries. He's testing a pilot with local authorities and scientists. The project involves taking wastewater from hotels and homes to irrigate vines. The practice, which is also used in California, could be more energy-efficient and sustainable than taking water from costly desalination plant. Boutaris also tests planting vines in rows instead of scattered as in the traditional method, to improve irrigation efficiency, and atmospheric water collection. The hydrogels capture moisture in the air and then convert it to water using heat from solar panels. The Greek wine industry is at the center of a larger contest over land and water. Farmers, hoteliers and swimming pool operators compete to get a piece of the shrinking water supply during the summer months when tourists flock to islands such as Santorini. Santorini’s famed Assyrtiko vine production fell from 2,500 tons in 2022, to only 500 tons last season. Winemakers pay farmers 11 euros per kilogram, the same price as in Champagne. In the north of Greece, where it is cooler, a kilo costs just 80 cents. Stefanos Koundouras is a professor at Aristotle University, Thessaloniki. He said that Santorini had reached the limit of extreme conditions in 2023-2024. He claimed that temperatures had been the highest in 60 years. Koundouras warned that the wine industry could be less sustainable in Europe, especially?around Mediterranean if the climate continues to get hotter and dryer. We are already seeing problems with the special character and quality of the wine." The winemaker Yiannis Papaeconomou plans to tap into the wastewater project in order to water his vines that are?6 years old. He is also trying out other techniques, such as an irrigation system that water the vines from below the soil, rather than above the ground, in order to reduce evaporation. Also, he has trellised them, so they can receive more water. He said: "We must adapt to a new way and find a solution." ($1 = 0.8772 euro) (Editing done by Edward McAllister & Kevin Liffey).
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As US and Iran end hostilities, oil prices cool and stocks rise.
European stocks and U.S. Futures ticked up on Monday, after the U.S. & Iran agreed to?halt recent hostilities? and renew talks?. This helped oil prices drop after they spiked earlier on 'Monday?after renewed attacks between both sides. After several days of strikes, both sides have accused each other of violating an interim ceasefire after an Iranian projectile struck a cargo ship in the Strait of Hormuz. In morning trading, the STOXX 600 index in Europe rose by 0.1% while futures on the S&P 500 in America rose by 0.7%. After the U.S. &?Iran exchanged strikes over the weekend the oil initially rose on Monday, but then cooled down to trade around its lowest level since the conflict started. Brent crude has not changed much since last month, when it was $72.20 per barrel. This is a 22% drop for the entire month. Mohit Kumar, Jefferies' chief European economist, said: "The market will benefit from the drop in oil prices as well as its impact on global economic growth." Lower oil prices will lead to diversification of trade, and sectors that are growth-sensitive should perform better. Asian markets have pared their earlier losses, with South Korea’s KOSPI falling 0.2% and Japan’s Nikkei rising 0.15%. WAGE WAGERS FOR RATE INCREASE The Federal Reserve is under pressure to raise rates because of the soaring inflation in the U.S. The dollar has risen in value due to the increasing odds of a rate increase. The dollar index (which measures the U.S. currencies against other currencies) was at 101.25. This is just a little below the high of last week, when it reached a year-high. Fears of a further intervention by Tokyo prevented the Japanese yen from falling to its lowest level in 40 years. Investors have priced in at least one Fed rate hike this year. This is a dramatic change from the expectations of two rates cuts before the war began. BofA's strategists expect three increases, reflecting a more hawkish outlook that is partly based on the strong U.S. job growth. Gold was down 0.6% to $4,061 an ounce, as the dollar rose. The yellow metal will experience a 13% drop?in its second quarter. This is the biggest quarterly decline since 2013. Tech Worries - LINGER Investors are also concerned that AI-related companies' valuations have become stretched after years of gains. Futures for Nasdaq, the U.S. tech index, rose?1% Monday. This puts the U.S. Index on the right track to a recovery after it fell more than 4% last week. The Bank for International Settlements warned that the current AI investment boom could be short-lived, citing supply bottlenecks as well as intense competition. This could lead to the same kind of overinvestment experienced in previous boom and bust cycles. Jose Torres is a senior economist at Interactive Brokers. He said that the increasing costs of modern infrastructure are forcing firms to scramble for cash and increase their risks if these investments do not deliver. Torres stated that traders gravitated to the defensive and cyclically-oriented areas of equity in recent weeks.
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Kabul reports dozens of civilian deaths in Pakistani border operation.
Pakistan's security forces said that they killed 29 militants in ground and air operations near the Afghanistan border on Monday. The Afghan Taliban claimed at least 38 civilians were killed by airstrikes. The Pakistani air force launched its second attack on militant targets in Afghanistan, which it claimed belonged to them, on Sunday. This assault threatened to escalate the intermittent conflict between former allies who fought their most intense battle in many years in February. Attaullah Terar, the Information Minister, said that Pakistani airstrikes against three targets in Afghanistan's provinces Paktia Paktika Kunar, killed 25 militants, while destroying a "large quantity" of?weapons, ammunition and other materials. In the Bajaur district, the province of Khyber Pakhtunkhwa's northern border, four more militants linked to the Jamaat-ul-Ahrar group of Pakistan's Taliban have been killed during ground attacks. Hamdullah fitrat, the spokesperson for Afghanistan's government, stated that the strikes killed 38 civilians, including women and children, and injured 163. He said that the majority of casualties were caused by Pakistani jets which bombed a house in Paktia Province, killing 28 people and injuring another 158. Khalid Ahmad Sajad said that residents rushed to aid the injured when a second airstrike occurred. He told a news conference that "while they were rescuing the victims, Pakistani forces launched a 2nd airstrike at the same location." Tarar said Pakistan is responding to "recent terrorist incidents", including the?Saturday Jamaat-ul-Ahrar gun and bomb attack on a Sindh Rangers' facility in Karachi, which killed three of its soldiers?and injured another four? In a message posted on X, he stated that "Security Forces precisely struck?terrorist camp and safe havens." Islamabad accuses Kabul that it harbours militants, whom it blames for plotting terrorist attacks in Pakistan. The Afghan Taliban rejects the allegations, saying that militancy in Pakistan is a problem. Reporting by Mohammad Yunus Yawar, Bipasha dey, and Shilpa jamkhandikar, in Kabul; writing by Saad sayeed; editing by Chris Reese Kate Mayberry, and Clarence Fernandez
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Gold falls as new US-Iran strikes increase oil and Fed rate hike bets weigh
Gold prices?reduced on Monday, as the recent U.S. - Iran?strikes in the Gulf pushed up oil prices. Expectations of U.S. Federal Reserve rate hikes also weighed on this non-yielding material. As of 0602 GMT, spot gold was down by 0.8%, at $4,057.77 an ounce. U.S. Gold Futures for August Delivery fell 0.6% to $4072.20. Metal was heading for a fourth consecutive monthly loss of 10.5%. Tim Waterer is the chief market analyst for KCM Trade. He said: "U.S.-Iran were back at it over the weekend with new military strikes reported from both parties. This casts doubt on how long oil will remain at these low?levels, and thus the outlook of inflation and interest rates." After Iran launched missiles, drones and other weapons at U.S. military bases in Kuwait and Bahrain early Sunday morning, just a few hours after the U.S. Donald Trump has threatened to eliminate the Iranian leadership, if it does not adhere to the agreement that ends their war. Axios reported that Tehran and Washington had agreed to cease recent hostilities and resume talks about their dispute regarding the Strait of Hormuz. In a high-interest-rate environment, gold loses its appeal because it is a non-yielding investment. According to the CME FedWatch Tool, traders expect three Fed rate increases this year. They are pricing in an 80% chance that a December hike will occur. Investors will be watching for the June ADP employment data and the U.S. Nonfarm Payrolls data due this week to gauge the Fed's policy stance. Waterer said that "Gold could reach $5,000 again this year, but it would depend on a further de-escalation of the conflict and oil moving back to its pre-war level to reduce the inflationary impact. Silver fell by 0.9% per ounce to $58.64, platinum rose 0.1% to 1,616.55 while palladium rose 1.0% to $1,221.29. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Pablo Sinha from Bengaluru)
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Sources say China is accelerating plans to launch sulphur futures contracts as the Iran war increases price swings.
Sources say that China plans to launch the first sulphur contracts this year in an effort to hedge against price fluctuations?and to increase its pricing strength in the global market for a key material used in agriculture and mining. Two sources who are familiar with the issue said that the Dalian Commodity Exchange may?list? the sulphur contracts in the fourth-quarter of this year. However, the timeframe has not been finalised, and there are still more approvals needed. The Dalian exchange has not responded to multiple requests for comment. The China Securities Regulatory Commission (CSR), which usually approves?exchanges to launch futures contracts of a new product?, did not respond immediately to a'request for comments. One source said that the exchange had long planned to introduce these contracts. However, work has increased since the Iran War exacerbated volatility and highlighted the need for an hedging tool. China, the world's biggest consumer of sulphur imports around 50% of its supply every year. Customs data revealed that imports during the first five month period had more than halved from the previous year. Sulphur can be used in the production of fertilisers, in nickel and copper refining and mining, and for other applications. The sulphur price had been increasing for many years prior to the war with Iran, because half of the world's seaborne shipments pass through the Strait of Hormuz. The spot price of solid sulphur was 11,850 yuan (1,743.16) per ton in eastern China earlier this month. However, they slid to 9,043.5 yuan (?9,043.5) per ton last Friday, as sulphur transited the Strait again, according to Shanghai Metals Market data. Prices are still 292% higher than they were at the same point last year. Analysts at Huatai Futures stated in a Friday?note that the futures contracts could help users hedge the risk of price swings. The note did not specify a specific date but referred to the plans. They added that the contracts will help to strengthen China's pricing strength in the global sulphur market by allowing the industry to have visible commercial inventories on the exchange.
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MORNING BID EUROPE - Markets pivot on technology, Mideast anxiety
Ankur Banerjee gives us a look at what the European and global markets will be like today. The latest tit for tat attacks in the Middle East were stopped, causing a nervous reaction on the markets. Persistent unease about stretched 'tech valuations' and the prospect?of higher rates for longer added to doubts over a ceasefire which has been struggling to hold. The oil prices have risen on the back of renewed hostilities, but they've also slowed down as new talks raise hopes for an interim agreement. This helped lift U.S. stock futures and European stock prices, though Asian equities remain under pressure due to investors' concerns over stretched tech valuations as well as the drag of a stronger dollar. Investors are unsure if massive investments in AI infrastructure will be a success. Apple's price increases underscored that while?Micron’s strong earnings forecast from last week indicated an insatiable desire for memory chips. The dollar was hovering near its one-year high and cast a shadow over most currencies, but none more than the Japanese yen at 161,78 per dollar. The only thing that keeps the 'fragile yen' from falling below the 40-year lows at 161,96 is the prospect of another round of intervention. The Japanese government intervened in the market in order to stop the decline of the yen in April and early May, but as with previous episodes in the years 2022 and 20,24, the intervention failed to alter the trajectory of the yen. Markets are betting that the Federal Reserve will raise rates this year. The yen, therefore, needs a dramatic move from 'the Bank of Japan' to make a real comeback. Economic events in the Eurozone: Euro zone sentiment surveys, June (By Ankur banerjee from Singapore Edited by Shri Navaratnam).
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Gold falls as new US-Iran strikes increase oil and Fed rate hike bets weigh
Gold prices?eased? on Monday, as the recent U.S. - Iran?strikes in the Gulf pushed up oil prices. Expectations of U.S. Federal Reserve rate hikes also weighed on this non-yielding material. As of 0423 GMT, spot gold was down 0.6%, at $4,062.89 an ounce. U.S. Gold Futures for August Delivery fell 0.5% to $4077.50. Metal was heading for a fourth consecutive monthly loss of 10.4%. Tim Waterer is the chief market analyst for KCM Trade. He said: "U.S.-Iran were back at it over the weekend with new military strikes reported from both parties. This casts doubt on how long oil will remain at these low?levels, and thus the outlook of inflation and interest rates." After Iran launched missiles, drones and other weapons at U.S. military bases in Kuwait and Bahrain early Sunday morning, just a few hours after the U.S. Donald Trump has threatened to eliminate the Iranian leadership, if it does not adhere to the agreement that ends their war. Axios reported that Tehran and Washington had agreed to cease recent hostilities and resume talks about their dispute regarding the Strait of Hormuz. In a high-interest-rate environment, gold loses its appeal because it is a non-yielding investment. According to the CME FedWatch Tool, traders expect three Fed rate increases this year. They are pricing in an 80% chance that a December hike will occur. Investors will be watching for the June ADP employment data and the U.S. Nonfarm Payrolls data due this week to gauge the Fed's policy stance. Waterer said that "gold could reach $5,000 again this year, but it would depend on a further de-escalation of the conflict and oil moving back to its pre-war level to reduce the inflationary impact. Silver spot fell by 1.2%, to $58.47 an ounce. Platinum rose 0.2%, to $1617.15, and palladium increased 0.4%, to $1213.60. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Pablo Sinha from Bengaluru)
US and Iran renew their talks following strikes
After a halt to tit-fortat attacks between Iran and the United States, copper prices rose on Monday.
The Shanghai Futures Exchange's most active copper contract gained 1.32%, closing?daytime?trading?at 103,160 Yuan ($15186.44) per metric ton.
As of 0700 GMT, the benchmark three-month copper price on London Metal Exchange increased by 0.34% to $14,403.50 per ton.
A U.S. official announced on Sunday that Iran and the United States had agreed to cease recent hostilities and resume talks about?their dispute regarding the Strait of Hormuz. This has raised hopes of salvaging an interim peace agreement.
The Strait of Hormuz, the world's most important shipping route for energy, is located in this region. A disruption in the Strait of Hormuz can increase oil prices, cause inflation fears and affect risk appetite.
The dollar added to the previous three sessions' decline ?on Monday, providing support ?for the greenback-denominated commodities by making them more affordable for investors using other currencies.
The dollar is still near the one-year high it reached on 24th June.
Official data released on Saturday showed that industrial profits in China grew less rapidly in May but remained double-digits.
National Bureau of Statistics data showed that the growth in profit at China's industrial companies slowed to 21.1% from a previous year in May, down from 24.7% in April. Profits grew 18.8% from January to May, compared to an 18.2% rise in the first 4 months.
The non-ferrous ore mining and processing industry's profits jumped by 93.9% between January-May. Meanwhile, downstream manufacturers were still under pressure.
Aluminium gained 0.68% on SHFE. Zinc? climbed 2.45%. Lead dropped by 0.12%. Nickel added 0.24%. Tin rose 1.71%.
The?LME saw aluminium gain 0.46%. Zinc gained 0.94%. Lead added 0.37%. Nickel firmed 0.63%. Tin increased 1.09%. $1 = 6.7929 Chinese Yuan Renminbi (Reporting and editing by Harikrishnan Nair; Lewis Jackson)
(source: Reuters)