North Korea, Russia Agree to Expand Economic Cooperation

FILE - Russia's natural resources minister Alexander Kozlov, right, is greeted by Yun Jong Ho, minister of External Economic Relations, as the Russian delegation leaves Pyongyang Airport in Pyongyang, on Nov. 16, 2023. (AP Photo/Jon Chol Jin, File)
FILE - Russia's natural resources minister Alexander Kozlov, right, is greeted by Yun Jong Ho, minister of External Economic Relations, as the Russian delegation leaves Pyongyang Airport in Pyongyang, on Nov. 16, 2023. (AP Photo/Jon Chol Jin, File)
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North Korea, Russia Agree to Expand Economic Cooperation

FILE - Russia's natural resources minister Alexander Kozlov, right, is greeted by Yun Jong Ho, minister of External Economic Relations, as the Russian delegation leaves Pyongyang Airport in Pyongyang, on Nov. 16, 2023. (AP Photo/Jon Chol Jin, File)
FILE - Russia's natural resources minister Alexander Kozlov, right, is greeted by Yun Jong Ho, minister of External Economic Relations, as the Russian delegation leaves Pyongyang Airport in Pyongyang, on Nov. 16, 2023. (AP Photo/Jon Chol Jin, File)

North Korea and Russia reached a new agreement for expanding economic cooperation following high-level talks in Pyongyang this week, the North’s state media said Thursday, as they continue to align in the face of their confrontations with Washington.

North Korea’s official Korean Central News Agency didn’t elaborate on the details of the agreement signed Wednesday between its senior trade officials and a Russian delegation led by Alexandr Kozlov, the country’s minister of natural resources and ecology, The Associated Press reported. The Russian news agency Tass on Tuesday said officials following an earlier round of talks agreed to increase the number of charter flights between the countries to promote tourism.

Kozlov, who arrived in North Korea on Sunday, met with North Korean leader Kim Jong Un and his top economic official, Premier Kim Tok Hun, before returning home on Wednesday, KCNA said. During Kozlov’s visit, Russian President Vladimir Putin gifted Pyongyang’s Central Zoo with more than 70 animals, including lions, bears and several species of birds, according to Tass, in another display of the countries’ growing ties.

Kim Jong Un in recent months has prioritized relations with Moscow as he attempts to break out of international isolation and strengthen his footing, actively supporting Putin’s war on Ukraine while portraying the North as a player in a united front against Washington.

Kim has yet to directly acknowledge that he has been providing military equipment and troops to Russia to support its fighting against Ukraine. South Korea’s National Intelligence Service told lawmakers in a closed-door briefing on Wednesday that an estimated 11,000 North Korean soldiers in late October were moved to Russia’s Kursk region, where Ukrainian troops seized parts of its territory this year, following their training in Russia’s northeast.

The spy agency believes the North Korean soldiers were assigned to Russia’s marine and airborne forces units and some of them have already begun fighting alongside the Russians on the frontlines, said Lee Seong Kweun, a lawmaker who attended the meeting. US, South Korean and Ukrainian officials have claimed that the North has also been supplying Russia with artillery systems, missiles and other equipment.

North Korea would be possibly getting anywhere between $320 million to $1.3 billion annually from Russia for sending its troops to Ukraine, considering the scale of the dispatch and the level of payments Russia has been providing to foreign mercenaries, according to a recent study by Lim Soo-ho, a South Korean analyst at an NIS-run think tank.

While that would be meaningful income for North Korea’s crippled and heavily sanctioned economy, it could be lower than the money the North earns from illicit coal exports or supplying military equipment to Russia, Lim said. This suggests that North Korea’s troop dispatch is less about money than acquiring key Russian technologies to further advance its nuclear weapons and missile program, which is a major concern in Seoul, Lim said.

Amid the stalemate in larger nuclear negotiations with Washington, Kim has been dialing up pressure on South Korea, abandoning his country’s long-standing goal of inter-Korean reconciliation and verbally threatening to attack the South with nukes if provoked. He has used Russia’s war on Ukraine as a distraction to accelerate the development of his nuclear-armed military, which now has various nuclear-capable systems targeting South Korea and intercontinental ballistic missiles that can potentially reach the US mainland.



Gold Slips Over 2% as Dollar Holds Firm on Fed Rate-hike Expectations

British gold bars and sovereign coins on display in a London shop. (Reuters)
British gold bars and sovereign coins on display in a London shop. (Reuters)
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Gold Slips Over 2% as Dollar Holds Firm on Fed Rate-hike Expectations

British gold bars and sovereign coins on display in a London shop. (Reuters)
British gold bars and sovereign coins on display in a London shop. (Reuters)

Gold prices fell more than 2% on Tuesday, pressured by a firmer US dollar on expectations of Federal Reserve interest rate hikes this year, while investors assessed US-Iran peace talks.

Stocks across the globe declined amid concerns over AI-related share valuations and as higher interest rates loomed. Crude fell 1% while the dollar held near a one-year high, making gold less affordable for buyers holding other currencies.

Spot gold was down 2.2% at $4,099.84 ⁠per ounce, as ⁠of 0753 GMT. US gold futures for August delivery fell 2% to $4,117.70, Reuters reported.

Spot silver slumped 5% to $61.90 per ounce, platinum lost 3% to $1,628.55, and palladium was down 2.9% at $1,229.28.

"Gold had received some relief from lower oil prices this week, but it is getting no such favors from the US dollar, which continues to push higher ⁠on expectations of Fed rate hikes," said Tim Waterer, chief market analyst at KCM Trade.

Traders now see an 88% chance of a rate hike in December, up from 61% before the Fed meeting last week, according to the CME FedWatch Tool, as investors price in hawkish monetary policy under new Chair Kevin Warsh.

Chicago Fed President Austan Goolsbee said that with the labor market stable, he is focused on figuring out whether too-high inflation will stay that way or recede, as the effects of high tariffs ⁠fade, and ⁠if the conflict in the Middle East gets resolved.

The US has waived sanctions on Iran for 60 days after the first talks under a nascent peace deal, while officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region.

US Vice President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear program.

Investors await US Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due on Thursday, for further cues on monetary policy.


EU Bets on Digital Euro to Cut US Tech Addiction

Euro banknotes, Visa and Mastercard cards are placed on a keyboard in this illustration taken September 24, 2025. (Reuters)
Euro banknotes, Visa and Mastercard cards are placed on a keyboard in this illustration taken September 24, 2025. (Reuters)
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EU Bets on Digital Euro to Cut US Tech Addiction

Euro banknotes, Visa and Mastercard cards are placed on a keyboard in this illustration taken September 24, 2025. (Reuters)
Euro banknotes, Visa and Mastercard cards are placed on a keyboard in this illustration taken September 24, 2025. (Reuters)

The EU believes a digital euro is the answer to cutting its addiction to US payment systems, like Visa and Mastercard, as well as Apple Pay and Google Pay, as the bloc seeks to favor European firms over others.

Brussels hopes it could provide an alternative local option for any payments in shops or online since people could easily pay, just like other systems, using a card, an app or via their banking app.

The European Union will move one step closer on Tuesday to creating a digital euro when EU lawmakers hold a long-awaited vote on the virtual currency.

The European Central Bank first suggested the digital euro in 2020 because Europe lacked its own system before the EU executive made its formal proposal.

The digital euro cannot be created without the rules underpinning the project being approved by the EU capitals and the European Parliament.

What is the digital euro?

Don't confuse it with your cash in the bank. When you use your bank card, Apple or Google Pay, you pay with physical money that exists in your account.

Instead, your digital euros would be in a separate virtual wallet.

The ECB hopes the digital euro will be available to citizens in 2029 if the EU negotiators greenlight the rules by the end of the year.

If that timeline sticks, the ECB is ready to launch a pilot program in mid-2027 to test how it would work in practice.

Some say that is too long, but "banks and merchants need time to prepare so they can roll it out smoothly and at scale", Alessandro Giovannini, advisor to the digital euro director at the ECB told AFP.

How will it work?

Digital euros will have the same value as cash and banknotes.

Any user would need to create an account with a bank or a public institution, like a post office, and transfer money into it from another account or via a cash deposit.

Users can then pay with digital euros in shops, online and between individuals using different methods, including card, app or phone.

Officials stress the system would protect people's privacy, with no possibility to identify who made transactions, and an offline mode that would be as confidential as using cash.

"It wouldn't replace anything. Cash would still be available, and people could use existing private payment methods," the ECB's Giovannini said.

The digital euro would give more choice and let consumers "preserve their freedom to choose how to pay as daily life becomes more digital", he added.

Why does the EU want a digital euro?

Payment systems are "not neutral" but "instruments of power", centrist EU lawmaker Gilles Boyer said in a statement.

"We, Europeans, have had many wake-up calls about our dependence on the US. We're fully awake now, but we're not always acting," he said, adding Tuesday's vote would make "a sovereign, pan-European payment solution a reality".

EU officials often point to Washington's 2025 sanctions against International Criminal Court judges to illustrate the grip of US firms. French judge Nicolas Guillou has described how he lost access to his Visa card.

The digital euro is "a chance to end a dependence we have lived with for too long".

According to the ECB, nearly two-thirds of card payments in the euro area are handled by non-European companies -- mostly Visa and Mastercard.

And 13 out of 21 eurozone countries have no national card scheme for day-to-day payments in shops or online stores.

Who doesn't want it?

Banks. The main reason for their reticence is the cost.

Adapting the banking system to the digital euro will cost 18 billion euros ($20 billion), a report in April by the European Banking Federation said.

But the ECB insists it will cost the banking sector between four and 5.8 billion euros in investment costs.

Banks also fear the effects on their financial stability because if customers convert their money into digital euros, bank deposits would plummet.

The ECB says there is no risk.

"Thanks to its design that prevents large deposit outflows, the digital euro wouldn't cause these risks -- even in extreme and unlikely crisis situations," Giovannini said.

European banks also fear reduced demand for their online services and worry the digital euro is a rival to the pan-European payment system Wero.


Oil Falls 1% as Investors Focus on Hormuz Flows after Peace Talks

FILE PHOTO: Storage tanks and oil refineries in Jurong Island, Singapore, March 24, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Storage tanks and oil refineries in Jurong Island, Singapore, March 24, 2026. REUTERS/Edgar Su/File Photo
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Oil Falls 1% as Investors Focus on Hormuz Flows after Peace Talks

FILE PHOTO: Storage tanks and oil refineries in Jurong Island, Singapore, March 24, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Storage tanks and oil refineries in Jurong Island, Singapore, March 24, 2026. REUTERS/Edgar Su/File Photo

Oil prices fell more than 1% on Tuesday, extending losses from the previous session, on signs of some progress in restoring crude flows through the Strait of Hormuz following US-Iran peace talks.

Brent crude futures fell $1.09, or 1.4%, to $76.81 a barrel and US West Texas Intermediate declined to $72.99 a barrel, down 87 cents, or 1.2%, as of 0607 GMT.

Prices fell more than 3% on Monday after the United States granted Iran a 60-day sanctions waiver following initial peace talks, and as officials reported a ‌lull in hostilities ‌in Lebanon under the broader agreement, Reuters said.

"The gradual increase ‌in ⁠oil flows through ⁠the Strait of Hormuz continues to weigh on the market," said ING analysts in a note.

Two crude tankers with just under 2 million barrels of oil sailed through the Strait of Hormuz on Monday, ship-tracking data showed, in a sign that traffic was picking up following weaker flows on Sunday due to concerns over passage through ⁠the waterway.

"Transits over recent days look to have ‌risen sharply, (which) the market will ‌treat as a proxy for both physical oil, perhaps paper oil, and diplomatic ‌progress," said Sparta Commodities' head of research Neil Crosby in ‌a note. "It feels like we will be stuck in this bearish risk-off/optimistic mood until such time as something changes."

The price declines come after a weekend that had appeared to put the week-old accord in jeopardy, including ‌threats from US President Donald Trump to restart the war if Iran disrupted shipping through the Strait ⁠of Hormuz ⁠after Tehran declared the strategic waterway closed.

"There remains a prevailing dose of market skepticism, rooted in deep-seated mistrust between Washington and Tehran, suggesting that any return to pre-war oil prices is likely to be delayed rather than immediate," said Tim Waterer, chief market analyst at KCM Trade.

Separately, analysts in a Reuters poll expect US crude inventories to have fallen last week, along with distillate and gasoline inventories.

On Monday, government data showed US crude stocks in the Strategic Petroleum Reserve fell to 331.2 million barrels last week, the lowest since June 1983, as supplies tightened in the wake of the US-Iran conflict.