Latest News
-
What is behind Iran's long-running dispute with the United States of America?
The United States has withdrawn some diplomatic staff as well as military families from the Middle East citing regional security threats that are not specified. The long-standing rivalry between Iran and the United States may have contributed to tensions. This article explains the history of the rivalry and how it played out. It also explains why tensions have risen again. Why did Iran and the United States become enemies? Iran and the United States have been friends for much of the 20th Century. In the 1950s as the Cold War began to take hold, Washington relied heavily on Iran's ruling Shah to stem the spread of Soviet influence in the oil producing Middle East. The Shah's popularity was waning at home, and the CIA helped to topple a populist Iranian Prime Minister, Mohammed Mossadegh. He had nationalised Iran’s British-owned Oil Company and wanted a neutral Cold War stance. The Islamic Revolutionaries in Iran who overthrew the Shah of Iran in 1979 accused the CIA for training the secret police of the Shah and vowed that they would fight Western imperialism throughout the region. They called America the "Great Satan". The American embassy was taken over by revolutionary students who held dozens of diplomats, staff and others hostage for a period exceeding a year. This ended a strategic alliance which had shaped this region for decades. How did the US-Iranian Rivalry play out? The new Iranian government sought to export the Islamic Revolution to other Shi'ite Muslims, as well as groups that opposed Israel. It saw Israel as the main avatar of an imperialist Western project oppressing Muslims throughout the Middle East. Hezbollah was established in Lebanon by the Islamic Revolutionary Guards Corps of Iran in the early 1980s. The United States accuses this group of bombing their embassy and Marine barracks in Beirut, Lebanon, in 1983 and killing 300 people, mainly Americans. Hezbollah has claimed that other groups are responsible for the wars it fought with Israel, the U.S.'s main regional ally. Iran also had complaints. Baghdad backed Baghdad in its war against Iran. Iraq invaded Iran and began using chemical weapons in 1982. In 1988, a U.S. ship mistakenly downed an Iranian passenger aircraft and killed 290 people. After 1990 tensions began to ease as the U.S. focused its attention on Iraq following Baghdad's invasion and Iran elected Mohammed Khatami in 1997, a reformist president who wished for better relations with Western countries. In the early 2000s, rivalry erupted again when U.S. president George W. Bush labelled Iran as part of an “Axis of Evil” along with Iraq and North Korea. This label caused anger in Iran. In 2002, Iran's secret nuke programme was revealed. The U.S. invasion of Iraq led by 2003 placed the two countries at odds in a battle for control of the Shi'ite-majority country. Who are the U.S. and Iran in the Middle East? In conflicts and political battles between both sides' proxies, the U.S. and Iranian rivalry is often played out in the background. Iran also supports Hezbollah and other armed Shi'ite groups in Iraq, including the Houthi group, which has attacked international shipping on the Red Sea, as well as the Palestinian militant group Hamas. The United States has been the principal international supporter of Israel for many years, Iran's main regional rival. The United States is also an ally of the Sunni Gulf monarchies, who have for many years been waging their own war against Iran. Saudi Arabia, along with other Sunni-majority countries, has buried the hatchet and is now a friendly nation. However they are still wary of any U.S. attacks on Iran and fear retaliation. How does the Iranian nuclear issue fit in? Iran's nuclear program was put in the crosshairs of the U.S. after it was revealed that Iran secretly enriched uranium. This process can be used to make fuel for a power plant, but also more concentrated material for a weapon. As negotiations on Iran's nuclear program have been dragging out for years, the West has stepped up its pressure with sanctions. Iran claims that its program is completely civilian and it has the right enrich uranium. Washington and its allies claim that Iran has always hidden key elements of its program and believes it is trying to build a nuke bomb. Iran and six major countries including the United States agreed in 2015 to curb Tehran's nuke work in exchange for limited sanctions relief. But U.S. president Donald Trump ripped the deal up in 2018. Trump has warned that if there's no new agreement, he will bomb the country. Why is Israel's position on Iran important? Israel has repeatedly called Iran its most dangerous adversary and indicated that it could strike Iran's nuclear sites. A similar attack would require the U.S.'s consent, which could drag Washington into a war with Tehran. Israel has been widely viewed as being behind the covert attacks against Iran's nuclear program, including Stuxnet and the assassination of scientists. Israel has not confirmed or denied this. Since the Hamas attacks on Israel in October 2023, tensions have risen as the war in Gaza has raged. Israel struck Iranian targets in Syria, Iraq and Syria last year. Iran's Houthi ally in Yemen launched strikes against Israel. Iran and Israel exchanged direct fire twice with drones and missiles, highlighting the possibility of full-blown warfare.
-
Germany's Bund yield falls to its lowest level since May due to safe-haven flows
Germany's 10-year bond yield fell to a six-week low Thursday, as safe haven flows benefited from market anxiety over trade and tensions with the Middle East. This came a day following soft U.S. Inflation numbers. The benchmark yield for the Eurozone, Germany's 10-year Bund, is now at 2.473% - its lowest level since early May. Yields dropped around the globe on Wednesday, after data showed that U.S. consumer price increases were lower than expected in May due to cheaper petrol and a healthy appetite for U.S. Treasuries at auction. The bond rally on Thursday was supported by a global tone of risk-off after U.S. president Donald Trump announced that the United States will send letters outlining terms of trade agreements to dozens countries in one to two week, which they can accept or reject. Separately Trump stated that U.S. personnel was being relocated out of the Middle East "because it could be a very dangerous place". Stocks fell and safe haven currencies such as the Japanese yen, Swiss franc and other currencies rose. Now, the focus is on U.S. producer prices due Thursday. It's not usually a major market mover but it will be interesting. In a note, ING analysts predicted that it would show a rebound from the declines seen in May. They also said that they expect U.S. Treasuries will continue to rise unless the bounce is "overly vigorous". Investors in Europe were watching European Central Bank speakers to determine if the rate cut last week was the final one in this cycle. This is despite the ECB's forecast that inflation will fall below its 2% goal next year. Isabel Schnabel, a member of the ECB Executive Board, said that on Thursday interest rates are in a good place because inflation will likely return to its target over the medium-term. Gediminas Simkus, a Lithuanian policymaker, said that interest rates could need to be further lowered this year due to the risk of undershoot. The markets are pricing in another rate cut for this year. The other euro zone bonds moved largely in line with benchmark. Italy's 10-year bond yield fell 5 basis points to 3.42%. The yield on Germany's two-year interest rate sensitive bond fell by 4 basis points to 1.81%. (Reporting and editing by Kate Mayberry and Kirby Donovan; Alun John)
-
Yankees aim for a season-series sweep over Royals
The Kansas City Royals have only been swept in one series this year -- by the New York Yankees. They are now looking to repeat that feat. On Thursday night, the visiting Yankees will attempt to complete a season-perfect series against a struggling Royals. New York defeated Kansas City by 12-6 in all three games played in the Bronx between April 14-16. Then, on Tuesday, they won the first game of the current series 10-2. The Yankees tagged Kris Bubic for five runs on Wednesday in the second inning. He had entered the game with a 1.43 ERA which was the best in the major league. Aaron Judge hit his 25th and fourth home runs in three games as New York won 6-3. You have to execute. Matt Quatraro, Kansas City's manager, said that there are no "free outs" in the New York lineup. The Royals' inability to score more than three runs against the AL East leaders, the Yankees, this season hasn't been helpful. The three runs were scored in the ninth inning on Wednesday, with Salvador Perez's home run bringing them to a two-run total. Kansas City is 10-18 after starting with a 24-16 record. In this series, the Royals scored just two runs against Yankees starters over 13 innings. The Yankees scored 39 runs over their last five games. Trent Grisham, a New York outfielder, told Amazon Prime Video: "I think we're doing everything around." Judge has a batting average of.394 and a five-homer, three-RBI performance against Kansas City. Aaron Boone, manager of the Yankees, said: "The most amazing thing is that I feel like he just plays well." I don't think he was on fire at all. "I think that he is just playing well and getting his hits. He's doing his thing." Judge is only 1-for-11 and has five strikeouts versus Seth Lugo, Kansas City's scheduled starter for Thursday (3-5, 3.46 ERA). Lugo allowed two walks and three hits over six and a half innings in a 4-1 Royals loss on April 14. Jazz Chisholm Jr. and Grisham also homered against Lugo. Lugo has a 5-3 record with a 3.00 ERA over 15 appearances (5 starts) against the Yankees. The right-hander gave up a single home run and another run in five innings of a no decision against the Chicago White Sox. New Yorkers Paul Goldschmidt and DJ LeMahieu, who each hit a single with two runs on Wednesday, are combined 14 for 27 against Lugo. Will Warren (4-5, 5.34) will face Kansas City on Thursday for the first-time. During a stretch of four starts from May 9-25 the right-hander was 2-0 with a 2.05 ERA. In his last two starts, he's allowed 11 runs with eight walks in 6 2/3 inning. Warren allowed four of these runs and four walk-offs in 4 34 innings against the Boston Red Sox on Friday, but New York took a 7-0 advantage and won 9-6. Vinnie Pasquantino of Kansas City, who has been batting.429 in this streak, will be trying to stop him. Pasquantino also has reached base in 26 straight games. Field Level Media
-
Palm vegoils prices rise on bargain-buying
Malaysian palm oil futures recovered on Thursday, after two consecutive sessions of losses. Supported by bargain-buying and the expectation of a slow rise in production for June, while weakness in competing vegetable oils limited gains. At closing, the benchmark contract for palm oil delivery in August on Bursa Malaysia's Derivatives exchange was up by 1 ringgit or 0.03% to 3,840 Ringgit ($910.60). A Kuala Lumpur based trader stated that "Bursa Malaysia crude Palm Oil Futures are supported by the slow increase in production as well as the outlook for improved exports because of competitive pricing." Dalian's palm oil contract, which is the most active contract in Dalian, lost 0.22%. Chicago Board of Trade Soyoil fell 0.58%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils. The Malaysian Ringgit, the contract's currency, has eased by 0.43% against U.S. Dollar, making it more attractive to foreign currency holders. The palm oil price may test the 3,812 ringgit support level per metric tonne, and there is a high chance that it will fall below this level to 3,768 ringgit.
-
Burkina Faso has completed the nationalisation of five gold mines
According to a late-released decree, Burkina Faso completed the transfer of gold mining assets from the state-owned miner to the country. This finalised a process which began in August, to increase its control over mineral resources. Burkina Faso, like its neighbours Mali & Niger, is trying to gain a greater share of their resources following the revision of its mining code in 2013. The Societe de Participation Miniere du Burkina, or SOPAMIB, was established to manage and own strategic mining assets. The five assets that were transferred to the government include two gold mines and exploration licenses owned by subsidiaries of London listed Endeavour Mining and Lilium. These include Wahgnion Gold SA and SEMAFO Boungou SA. The state stepped in after a deal to sell Endeavour assets to Lilium stalled. The decree stated that "this acquisition is in accordance with the State's policy on sovereign ownership of mineral resources for optimal exploitation to the benefit of the populace." Burkina Faso will be Africa's fourth-largest gold producer in 2023, with more than 57 tonnes of gold. It has announced that it will continue the nationalisation process, which, according to the government, will bring in more revenue for the country, especially after the 27% increase in gold prices this year. The reforms have also alarmed western investors such as IAMGOLD Canada, Nordgold, and West African Resources Ltd.
-
Copper prices rise on the back of dollar weakness but demand is still cloudy
The copper price rose on Thursday due to a weaker US dollar. However, persistent concerns about demand and unresolved tensions in trade continue to cloud the outlook for the market. The price of three-month copper at the London Metal Exchange rose 0.2% to $9,667 per metric tonne by 0925 GMT. Dollars are cheaper for those who use other currencies. The weaker dollar is providing some support. "But more generally, uncertainty surrounding trade negotiations continues pressure cyclical assets such as copper," said Nitesh Sharma, commodities strategist at WisdomTree. U.S. president Donald Trump said Wednesday that he was willing to extend the deadline of July 8 for the completion of trade talks. He added, however, that the U.S. will send letters to dozens of countries in the coming weeks, detailing the terms of the trade agreements, which they can then accept or reject. UBS stated in a report that the most recent manufacturing PMIs in China, Europe and the U.S. remain in contractionary territory, underlining the drag of the ongoing tariff situation. The PMI is indicating that the final demand for copper will be low. The note said that some demand was front-loaded ahead of U.S. Tariffs, which has helped copper consumption. U.S. Imports have also tightened the market in other countries. Washington began an investigation in February into U.S. imports of copper, which pushed COMEX prices up to a significant premium over LME. Trading firms have taken advantage of the situation and redirected copper flow from other regions to the U.S. U.S. COMEX Copper Futures dropped 0.2% to $4.80 a lb. This brings the premium over LME Copper to $920 a tonne. Ivanhoe Mines, a major copper producer in the Democratic Republic of Congo announced Wednesday that underground operations had been resumed at a portion of the mine, which was previously suspended due to seismic activity. The company has lowered its guidance for production this year. "Downgrades in production estimates, particularly from the DRC, are weighing down on the outlook for supply." According to Shah, "the market will be in a deficit of supply by the end of the year." LME aluminium rose 0.2%, to $2,521.5. Zinc fell 0.4%, to $2,642.5. Nickel dropped 0.5%, to $15,100. Tin remained at $32,605. Lead gained 0.2%, to $1,990.5. (Reporting and editing by Jan Harvey in Bengaluru, Ashitha Shivaprasad from Bengaluru)
-
Rate-cut bets have pushed gold to a one-week high. Now, the focus is on US PPI data
Gold prices reached a new one-week record on Thursday. This was driven by the softer U.S. data, which increased expectations for Federal Reserve rate reductions this year. Investors were also looking to other inflation data to get further direction. As of 0838 GMT spot gold was up by 0.2%, at $3360.29 per ounce. It had earlier reached its highest level since the 5th of June. U.S. Gold Futures rose 1.1% to $3380.00. The U.S. Dollar Index fell by 0.3%, to a level not seen in two months. The dollar is weaker, making bullion more affordable for buyers who hold other currencies. "Gold is stuck... a break above 3,400 dollars will be needed to change this. "The near-term focus is on Middle East developments and the dollar, as well as speculation regarding the timing of the U.S. next rate cut," Ole Hansen said, head of commodity strategies at Saxo Bank. The Consumer Price Index in the United States increased by 0.1% last week after increasing 0.2% in April. The economists surveyed by predicted that the CPI would increase 2.5% on a year-on-year basis and climb 0.2%. The markets are pricing in a rate cut of at least 50 basis points this year. Gold is a safe haven asset that thrives in uncertain economic times or low interest rate environments. Investors will now be focusing on the U.S. Producer Price Index due at 1230 GMT ahead of the Federal Reserve meeting scheduled for June 17-18. Hansen said that the PPI will be closely watched to determine if it can surprise with a CPI like surprise, or if expectations of rising input prices are confirmed. The geopolitical situation is also a concern. On Wednesday, U.S. president Donald Trump announced that U.S. personnel would be moved out of the Middle East as "it could potentially be a dangerous area". He added that the United States wouldn't allow Iran to possess a nuclear bomb. Palladium fell 1.9% to $1,059.25. Platinum rose 0.3% at $1,260.14. (Reporting from Anushree mukherjee, Bengaluru. Editing by Emelia sithole-matarise.)
-
IAEA Board Resolution declaring Iran in violation of Non-Proliferation Duty
Here are some key passages of a four-page Iran resolution that the 35-nation Board of Governors of the International Atomic Energy Agency passed on Thursday, according to diplomats. The text was still classified and only seen by. The Board of Governors ,... (d) Referring to the Board of Governors resolutions of 19 juin 2020..., of 8 june 2022..., of 17 november 2022 ..., of 6 june 2024 ...,, and of 21 november 2024 ...,, which called on Iran to cooperate fully with the Agency, and decided it was essential and urgent for Iran to act in accordance with its legal obligations, and to clarify all outstanding issues to take all specified action without delay (e) Regretting the fact that, despite numerous opportunities given by the Director-General since 2019, Iran failed to provide co-operation under its Safeguards Agreement. This included impeding Agency activities, sanitizing sites, and failing to repeatedly provide the Agency with technical credible explanations of the presence of uranium particle of anthropogenic source at several undeclared places in Iran, or information on current locations of nuclear material, or contaminated equipment. Instead, Iran claimed, contrary to the Agency's findings that, The Director General concluded that Iran had not declared nuclear material or nuclear-related activities in three undeclared Iranian locations, specifically Lavisan-Shian and Varamin. Due to the Agency's inability to obtain technically credible answers from Iran, it is unable determine whether nuclear material in these undeclared Iranian locations has been consumed, combined with other declared materials, or remains outside Safeguards. (g) Noting the Agency's conclusion, that these undeclared sites were part of a structured, undeclared programme that Iran carried out until the early 2000s and that some activities involved undeclared nuclear materials, (h) Noting the Agency's conclusion, which is of concern, that Iran retained unidentified nuclear material or heavily contaminated equipment and other assets arising from a former undeclared nuclear programme at Turquzabad from 2009 to 2018, after which the items were removed, but the whereabouts remain unknown. (k) Noting Iran's repeated failure to cooperate in facilitating the implementation of Safeguards while engaging in activities consistent with concealment, including extensive sanitization, and providing inaccurate explanations, is a significant obstacle to the Agency’s ability to verify and clarify Iran’s declarations as well as the exclusive peaceful nature of Iran’s nuclear program. (n) Regretting Iran’s failure to provide technical credible explanations for undeclared nuclear materials. (o) Repeating its concern that Iran still hasn't provided the necessary, full, and unambiguous co-operation with the Agency, and hasn't taken the urgent and essential actions as determined by the Board in June and November 2024 Resolutions... (p) Worried that the Agency has reached a deadlock in resolving this issue, 1. We regret that despite numerous opportunities and repeated requests from the Board, Iran has not fully cooperated with the Agency as required by the Safeguards Agreement. 3. The Agency finds that Iran has failed to comply with its Safeguards Agreement since 2019, by failing to cooperate fully and promptly with the Agency regarding undeclared material and activities in multiple undeclared locations. ...; 4. The Agency's inability to verify the absence of diversion of nuclear materials required to be safeguarded by the Agreement for nuclear weapons or other explosive devices is also consistent with Article 19; 5. It also finds that, in accordance with Article III.B.4 in the Statute of the Agency, the Director General’s inability to... provide assurance that Iran’s nuclear program is exclusively peaceful raises questions that fall within the jurisdiction of the United Nations Security Council as the principal organ responsible for maintaining international peace and safety, and it expresses grave concern at this point. 6. ... The Board will discuss the timing and the content of the report that is required by Article XII.C in the Agency Statute, as well as Article 19 of Iran’s Comprehensive Safeguards Agreement and the notification that is required by Article III.B.4 in the Agency Statute. 7. Reaffirms that in order to verify the nondiversion nuclear material, it is imperative and urgent that Iran fulfill its legal obligations. To clarify all remaining Safeguards questions, the following immediate actions should be taken: Give technical credible explanations as to why uranium of anthropogenic source is present in two undeclared places in Iran. Inform the Agency about the location of nuclear material or contaminated equipment. Please provide all the information, documentation, and answers that are required by the Agency for this purpose. Access to the locations and materials the Agency needs for this purpose as well as the taking of sample as the Agency deems appropriate; 10. Demands that Iran remedy its noncompliance to its Safeguards Agreement as soon as possible by taking any steps necessary to the Agency and Board so that the Director-General can give the assurances necessary regarding the accuracy and completeness in Iran's declarations made pursuant to the Safeguards Agreement. 11. It stresses its support for a solution diplomatic to the problems caused by the Iranian Nuclear Programme, including the talks that took place between the United States of America and Iran. This led to an agreement which addressed all international concerns about Iran's nuclear activities.
Oil prices fall as markets evaluate the outcome of US-China trade talks
The oil prices in Asian trade fell on Wednesday, as the markets assessed the results of U.S. - China trade talks that have yet to be reviewed and analyzed by President Donald Trump. Weak Chinese demand for oil, along with OPEC+'s production increase, weighed on the market.
Brent crude futures fell 19 cents or 0.3% to trade at $66.680 per barrel. U.S. West Texas intermediate crude dropped 16 cents or 0.3% to $64.82 as of 0318 GMT.
U.S. officials and Chinese officials have agreed on a framework for re-establishing their trade truce and resolving China's export limitations on rare earth minerals, magnets and other materials. This was announced by U.S. Secretary of Commerce Howard Lutnick on Tuesday after two days of intensive negotiations in London.
"The current price corrections are a combination of technical profit-taking, and caution in the lead-up to (the official) announcement between US-China," said Phillip Nova. Senior market analyst Priyanka Sahdeva.
Lutnick said that Trump would be informed of the results before giving his approval.
Tony Sycamore is a market analyst at IG. He said, "I think that it will remove some downside risks for crude oil. This includes the Chinese economy, and it will stabilize the U.S. economic ship. Both of these should support crude oil demand and price."
OPEC+, on the other hand, plans to increase its oil production in July by 411,000 barrels a day as it seeks to undo production cuts for a 4th consecutive month. However, some analysts do not expect regional demand to absorb these excess barrels.
Hamad Hussain, climate and commodities analyst at Capital Economics and a noted expert on oil prices, said that a greater oil demand in OPEC+ countries - notably Saudi Arabia – could offset the additional supply of the group and support the oil price.
Brent crude will still fall to $60pb at the end of the year, despite any seasonal boost in demand.
The Energy Information Administration (the statistical arm of U.S. Department of Energy) will release its weekly report on U.S. crude oil inventories on Wednesday.
According to sources citing American Petroleum Institute data on Tuesday, crude stocks dropped by 370,000 barrels in the past week.
On Monday, analysts polled by expected that U.S. crude stockpiles would fall by 2 million barrels during the week ending June 6, but distillate and gasoline stocks are likely to rise.
(source: Reuters)