Geopolitics

Japan said medium and heavy rare earth elements accounted for about 54% of the total rare earth content in mud lifted from the deep seabed near Minamitorishima island. Around 50 metric tons of mud were recovered, and the analysis identified elements including yttrium, gadolinium and dysprosium, according to the Cabinet Office’s national platform for innovative ocean development. The effort comes as Japan looks to diversify supplies amid China’s export controls on some heavy rare earths and related magnets introduced in April 2025 and later tightened for Japan. Japan plans a month-long large-scale mining trial starting in February 2027, targeting 350 tons of mud a day, with an industrialization assessment due by March 2028.

President Trump announced new tariffs of 10% to 12.5% on 60 nations under Section 301 of the Trade Act of 1974, citing forced labor, and threatened additional tariffs on the European Union. He also said he is considering what he described as a “massive attack” on Iran. Chip stocks sold off sharply, with SOXX down more than 4% and the Nasdaq 100 down 1.27% as Intel fell more than 7% despite a strong Q3 revenue outlook, while Arm, Marvell and Micron dropped more than 5%.

The U.S. imposed higher tariffs on goods from 60 trading partners as military tensions involving Iran escalated in the Middle East, driving investors toward safe-haven assets. The Dow Jones Industrial Average edged up while the Nasdaq Composite fell, and Europe’s STOXX 600 rebounded slightly. U.S. Treasury yields climbed to multidecade highs as markets priced in the possibility of a Federal Reserve rate hike.

COMEX gold rebounded to above $4,070 an ounce, while silver climbed to $59 an ounce. The article says investors are assessing how tensions in the Middle East may affect markets. It adds that gold and silver are traditional safe-haven assets whose price moves are positively correlated with geopolitical risk.

Tata Consumer Products said it will fully pass on any rise in raw material costs driven by the West Asia conflict or El Niño to consumers to protect profitability. The company has already raised tea prices and is staying cautious on items such as pulses, pending further developments in weather and geopolitical risks. While gross margins in its India business may face near-term pressure, it expects its full-year operating margin to expand by 50–70 basis points.

Gold and silver prices fell, with both metals down by nearly 1% as a firmer U.S. dollar and rising geopolitical tensions in the Middle East damped sentiment. The U.S. dollar index moved above 101 amid a fresh round of confrontation between the U.S. and Iran, with Iran reportedly hitting U.S. military installations and the U.S. continuing strikes on Iranian military facilities. COMEX gold slipped 0.48% to $4,030 an ounce and silver fell 0.41% to $57.80 an ounce. In India, MCX gold and silver futures also declined by close to 1% and broke key technical support levels.

Escalating geopolitical tensions in the Middle East have pushed crude oil above $90 a barrel, intensifying worries about a renewed rise in inflation. Gold futures are stabilizing around $4,150, with near-term gains capped by elevated U.S. bond yields and expectations of a tight Federal Reserve stance. Geopolitical risk and ongoing central-bank buying continue to underpin safe-haven demand. On the charts, gold is testing $4,155–$4,165 resistance, with $4,300 in view on a breakout and $3,940–$4,000 as the key support zone on a pullback.

Xero (ASX: XRO) fell 2.8% intraday to A$62.63, its lowest level since June 2022, leaving the stock down 65% year to date. The slide came as tensions in the Middle East pushed Brent crude back above US$100 a barrel, reviving inflation and rate-hike worries. The risk-off move weighed on global tech stocks, with the S&P 500 technology sector and the ASX tech index also posting sharp declines.

Geopolitical tensions in the Middle East escalated sharply after Houthi forces attacked oil tankers in the Red Sea and Iran moved closer to blocking the Strait of Hormuz, pushing Brent crude up 7% in a day and nearly 40% for the month, back above $100 a barrel. The ceasefire broke down completely as the US and Iran launched strikes against each other. Asian equities sold off broadly, with Japan’s Nikkei down 2.9% and South Korea’s KOSPI falling 3.7%. US Treasury yields jumped to multi-year highs as markets priced in a possible Federal Reserve rate hike as soon as next week.

A report by the International Energy Agency says the U.S.-Iran conflict has led to regular blockages of the Strait of Hormuz since March 2026, disrupting 20% of global LNG transits and lifting natural gas prices 30%. The agency says the shock is pushing power systems in multiple countries back toward coal. It forecasts global coal-fired generation to rise 1.4% in 2026, with power-sector CO2 emissions up 1%.