Latest Commodity News

The ongoing conflict between the United States and Iran is having a significant impact on Asian countries that rely heavily on oil imports from the Middle East. Energy analyst Vandana Hari warns that the effects could last for years or even decades due to Asia's growing dependency on these imports, making the region vulnerable to geopolitical tensions. The geographical proximity of the Middle East makes it the most economical source of oil for Asia, but this dependence has become a liability during the current hostilities.

The war has led to the shutdown of the Strait of Hormuz and threats to the Bab el-Mandeb Strait, crucial chokepoints for oil shipments. Yemeni Houthi forces have announced a blockade of the Bab el-Mandeb, causing several tankers, including two Saudi vessels loaded with crude for Asia, to turn around and seek alternative routes via the Suez Canal. This detour adds time and cost to oil deliveries, further increasing prices.

Oil prices have risen as a result of the conflict, adding to the financial burden for importers. For instance, India's oil import bill surged by over 60% in the three months ending June. The continued U.S. airstrikes on Iran suggest that mediation efforts are unlikely to yield immediate results, prolonging the disruption and keeping prices elevated for the foreseeable future.

The U.S. Department of Energy and the U.S. Department of Labor have signed a five-year agreement to accelerate the use of artificial intelligence, automation, and advanced sensors in the American mining sector. The goal is to improve worker safety, increase productivity, and support the domestic production of critical minerals.

The partnership will combine the Energy Department's technical expertise with the Labor Department's mine safety leadership to develop and deploy next-generation mining technologies. Joint research, testing, and demonstration projects will focus on hazard detection, accident reduction, emergency preparedness, and workforce training.

This initiative aims to strengthen critical mineral supply chains, create high-paying jobs, and enhance American energy dominance. It also involves digitizing legacy mining data and improving public datasets to better characterize domestic mineral resources.

Two companies are joining forces to create a large-scale rare earth recycling network in the United States. One company specializes in electronics recycling, while the other focuses on recovering rare earth elements from waste. Together, they will collect and process products containing magnets to extract valuable rare earths.

End-of-life electronics are a major untapped source of rare earths and critical minerals, but most are currently discarded. This partnership aims to capture those materials and turn them into a domestic supply. The process will also recover other metals like copper and aluminum. The recovered rare earths will support manufacturing, national security, and industries such as artificial intelligence, defense, and automotive.

The electronics recycler operates eight facilities across the U.S. and processes over a million pounds of e-waste daily. It will send materials containing rare earth magnets to the other company for recovery. The recycling company has a facility in Arizona that can process up to 25,000 tonnes of end-of-life components annually, and it is building a new campus in South Carolina with capacity for 2,000 tonnes of magnet material per year, expandable to 6,000 tonnes. The partners will also pursue government and commercial contracts to develop circular supply chains for critical materials.

Oil prices climbed in early Asian trade on Wednesday as hostilities between the United States and Iran intensified, with no signs of de-escalation. Brent crude traded at $92.44, up 1.57%, and West Texas Intermediate at $85.51, up 1.39%, both reaching five-week highs after a period of decline following the July 4th weekend.

The price surge was driven by continued U.S. military operations against Iranian targets, marking the 11th consecutive night of strikes. U.S. Central Command reported targeting Iranian military facilities and maritime assets to degrade Iran's ability to threaten commercial shipping. Iran has attacked over 30 commercial vessels in the past three months, and the market is closely watching for any Iranian pledge to halt attacks, which would be more influential than U.S. assurances that the Strait of Hormuz remains open.

The next potential escalation point is the Red Sea, where Yemen's Iran-backed Houthi movement has threatened to target ships carrying Saudi crude through the Bab el-Mandeb Strait. Saudi Arabia has increasingly used Red Sea routes after Iranian threats to tanker traffic in the Strait of Hormuz. Three Saudi oil tankers turned back in the Red Sea on Tuesday after the Houthis declared a blockade. Diplomatic progress seems unlikely, with President Trump indicating military operations may intensify. Meanwhile, U.S. inventory data showed mixed results, with API reporting increases in crude and distillate stocks but a decline in gasoline inventories.

NovaRed Mining has appointed Lee Evan Caplin, an executive producer of the Oscar-nominated film Ali and an entrepreneur behind Penske Media (owner of Rolling Stone and Variety), to its advisory board. This is the latest high-profile addition following recent controversy over the appointment of former U.S. Homeland Security secretary Kristi Noem. Caplin joins advisors including Noem and Katie Zacharia, appointments that led to the resignation of retired U.S. Navy Commander Phil Ehr in protest.

CEO Brian Goss stated that Caplin's expertise in technology commercialization, intellectual property, media, and higher education aligns with the company's vision for MetalCore AI, a platform using artificial intelligence, machine learning, computer vision, and predictive analytics to analyze geological data for critical mineral exploration. NovaRed is expanding beyond mineral exploration to commercialize this AI platform while advancing its Wilmac copper-gold project and Lamont Ridge property in southern British Columbia.

Caplin is founder and chairman of Picture Entertainment and helped establish the predecessor to Penske Media. He executive produced the 2001 film Ali starring Will Smith and has produced HBO's True Detective. NovaRed shares rose 3.5% on the day of the announcement, but the stock has fallen from around C$2 since Noem's appointment. The company has been promoting MetalCore AI, whose geological database has grown to over 4.1 million records, as it pursues technology partnerships and AI-related acquisitions.

The G7's plan to reduce reliance on China for critical minerals by setting a 60% import cap by 2030 signals a broader understanding that securing supply chains requires more than just mining. A U.S. lawyer noted that the strategy includes investment in processing, infrastructure, and permitting, not just extraction. China currently controls over 70% of global refining and over 90% of rare earth refining, making diversification a long-term challenge.

Permitting remains a major bottleneck, especially in the United States, where lengthy reviews and litigation can delay projects for years. The lawyer suggested that three to five years is a reasonable permitting timeline, as seen in countries like Chile. Early community engagement and clear project storytelling can help reduce legal challenges.

While recycling and reprocessing can contribute to supply, they cannot replace new mines due to high demand for minerals like copper, lithium, and nickel. The lawyer also questioned the effectiveness of strategic stockpiles and price support mechanisms, warning they might distort markets. No single policy will solve the critical minerals challenge, and the West must diversify across many minerals to catch up with China.

China's crude oil imports fell to a decade low in June, helping to cap oil prices despite supply disruptions from the Middle East conflict. The country has been drawing down its massive stockpiles, estimated at 1.2 to 1.4 billion barrels.

With oil prices back near $90 a barrel and Gulf producers cutting official selling prices, analysts at Goldman Sachs expect China to resume buying as soon as this month. China typically reduces imports when prices are high and increases them when prices drop to $60-70 per barrel.

China is also easing fuel export restrictions, which could further boost crude demand as refineries increase runs. However, the pace of recovery depends on Beijing's policies and global oil price movements. The world's top crude importer will continue to be a key swing factor in global oil markets.

Silver and gold prices rebounded on Tuesday after a two-week decline, driven by bargain hunters stepping in despite the ongoing US-Iran conflict. Silver led the gains, with Comex silver for September delivery rising 3.6% to $59.11 an ounce, and spot silver surging up to 5%, its biggest intraday gain in over five weeks. Gold also rose, with Comex gold for August delivery up 1.6% to $4,080.90 an ounce, finding support at the $4,000 level it had defended repeatedly.

The bounce was attributed to dip-buying rather than new geopolitical headlines. Silver outperformed due to safe-haven demand and stronger sentiment across industrial metals, as copper rallied, with about 50% of silver demand coming from industrial applications. Meanwhile, oil prices climbed as the US and Iran exchanged strikes for a 10th consecutive day, and Yemen's Houthis warned ships against calling at Saudi ports. Mediators pushed a proposal for a 10-day ceasefire to salvage the June 17 interim deal.

However, some analysts expressed skepticism about the sustainability of the bounce, noting gold's bearish technical picture. Official demand offered little support: Russia sold 43.5 tonnes of gold in the first half of 2026, its largest six-month sale in at least 25 years, to plug a budget deficit worsened by the war in Ukraine. China's gold demand remained near decade lows, with local gold ETFs seeing record outflows. In contrast, physical silver demand was strong due to Indian import restrictions and supply deficits, with dealer premiums at a six-month high.

Copper prices surged to their highest in over a month on Tuesday, driven by signs of a tightening physical market in China and renewed expectations that the US will impose tariffs on refined copper imports. Comex copper for September delivery rose 3.3% to $6.55 per pound, while LME copper gained 1.7% to $13,851 per tonne. The premium for New York metal over London widened to nearly $600 per tonne, more than double the previous day's gap, indicating that traders are again pricing in a duty on US imports.

In China, two key measures of tightness are flashing simultaneously. The premium for spot cathode over Shanghai futures jumped to 435 yuan ($61) per tonne, up from zero a week ago and the highest since May last year. Meanwhile, the Yangshan premium importers pay to bring copper into China climbed to $103 per tonne, also a one-year high. Deliverable copper stocks in Shanghai Futures Exchange warehouses have collapsed 82% since early May, while LME inventories have fallen 28%, with 56% of LME stocks on cancelled warrants awaiting delivery.

The tightening extends to smelters, with satellite data showing 16% of global copper smelter capacity inactive in the second quarter. Chile was the standout laggard with 25.4% inactivity, corroborating a 12.9% year-on-year drop in the country's copper output in May. Japan's Onahama smelter is set to stop processing concentrates by early 2027 due to record-low treatment charges. The tariff question remains unresolved, with the Commerce Department's update due at the end of June leaving the president to decide on a phased duty of 15% from January 2027 rising to 30% in 2028.

China's decision to restrict rare earth exports has prompted unprecedented international cooperation to build alternative supply chains. The export controls, which extended beyond the US to Japan, the EU, Australia and South Korea, have accelerated efforts by governments to coordinate investments in mining, processing and manufacturing outside China. Malaysia has become the first country outside China to separate heavy rare earths, and more projects are expected to follow.

Despite China's current dominance, controlling about 90% of global heavy rare earth separation and producing roughly 93% of the world's permanent magnets, its leverage is expected to decline over time. The US faces challenges as its deposits are dominated by light rare earths, requiring partnerships to secure heavy rare earth supplies from projects in Brazil, Angola and Australia. Simultaneously, the US is developing mines, separation facilities and magnet manufacturing after China banned exports of rare earth processing technology in 2023.

The objective is not complete independence but resilience. Reducing China's share of heavy rare earth separation from about 90% to roughly half would significantly reduce vulnerability to future export restrictions. This strategy is supported by a G7 agreement to source no more than 60% of rare earths from any single non-G7 country by 2030 and by Pentagon investments including a stake in a Saudi Arabian rare earth refinery and support for domestic processing through MP Materials, Lynas and Alkane Resources. Japan's experience after a 2010 rare earth export halt shows that diversification can take years, and building integrated supply chains requires controlling every stage of the value chain.