Arafat Refused to Credit Syria for Palestinian Resistance’s ‘Victory’ against 1982 Israeli Invasion of Beirut

Arafat is seen at the frontline in Beirut’s southern suburbs. (Getty Images)
Arafat is seen at the frontline in Beirut’s southern suburbs. (Getty Images)
TT

Arafat Refused to Credit Syria for Palestinian Resistance’s ‘Victory’ against 1982 Israeli Invasion of Beirut

Arafat is seen at the frontline in Beirut’s southern suburbs. (Getty Images)
Arafat is seen at the frontline in Beirut’s southern suburbs. (Getty Images)

The summer of 1982 was turbulent in Beirut and for the Palestinian resistance. Besieged by Israeli forces, the Palestinian resistance in the Lebanese capital realized that it had no other choice than to leave the city.

Palestinian leader Yasser Arafat realized that the time had come and he decided to leave by sea, refusing to take the Beirut-Damascus route. Four decades later, the Palestinians are still fighting for their cause to establish their own independent state. The Lebanese, meanwhile, have failed in forming their own state in spite of their success in liberating their territories from Israeli occupation.

Asharq Al-Awsat concludes on Friday a series of features highlighting the significant developments and recollections of influential players during that heated summer.

Shafik al-Wazzan

Lebanese former Prime Minister Shafik al-Wazzan believed that the Palestinian leadership knew that its time in Beirut was up from the very moment Israel besieged the city. The leadership sought to use the time it had left to make diplomatic and political gains.

The reality was that the Palestine Liberation Organization (PLO) could not carry on the battle forever, recalled Wazzan.

Weeks after the invasion, it became apparent that the Soviet Union was not prepared to take any dramatic move. The United Nations Security Council’s hands were tied. Only the United States could pressure Israel to end the invasion.

Of course, Israel had its own conditions that needed to be met before making any move.

No one could take the decision to completely destroy Beirut and bringing an end to the Palestinian leadership would have dire consequences on the entire Palestinian cause, said Wazzan.

On July 3, Wazzan informed US envoy Philipe Habib that the PLO had agreed to pull out its forces. Habib asked him if the Palestinians had signed a document to confirm their withdrawal. Wazzan said it had not occurred to him to request a signed document. Habib stressed that the Israelis would want written proof of their vow.

Wazzan relayed the envoy’s message to the Palestinians, who “received quite the shock by it.” He explained that the Palestinian leadership was trying to avoid submitting any written vow.

He recalled an ensuing heated meeting that was held between him, former PMs Saeb Salam and Takieddin al-Solh and Arafat at Salam’s residence. Wazzan said Arafat addressed the Lebanese people, especially the residents of Beirut, as if they had abandoned the resistance.

Salam was outraged by his remarks, saying: “You’re saying this after everything Beirut has done for you? You’re saying this after everything Lebanon has offered? Haven’t you seen the destruction in the country? Do want Beirut to be completely destroyed and for its people to be displaced?”

During the meeting, Solh asked the Palestinian leadership: “Are there any weapons you haven’t yet used in this war? If so, then we will stand by you and make sacrifices for you. Have any countries pledged to join the war, fight by your side and secure your victory? If so, then we will stand by you.”

“If you don’t have these weapons and that vow, then have mercy on Beirut, which is being destroyed in spite of everything that it has given and continues to give,” he told Arafat.

In the end, the Palestinians agreed to quit the city. Wazzan said the decision pained him as “we had supported the Palestinian resistance and stood by its side to an extent that we sometimes ignored its mistakes and neglected the Lebanese.”

Saeb Salam

When Israel invaded Lebanon, the Lebanese cabinet decided to place all capabilities at the army’s disposal. There were concerns, however, that it would be crushed by the invading military and the country would be left divided as a result, especially with various rival militias on the ground.

Wazzan wanted to resign when the Israeli army surrounded Beirut, but Salam warned that the country would not be able to tolerate more division and paralysis in the state. He offered Wazzan his complete support and persuaded him against resigning.

Salam’s position was hailed by his rivals, including Secretary General of the Lebanese Communist Party Mohsen Ibrahim and Secretary General of the Communist Action Organization in Lebanon George Hawi.

Salam recalled those days when Israeli Defense Minister Ariel Sharon wanted to destroy Beirut along with the Palestinians and Lebanese people. He said: “My sole concern was for the resistance to be safe and for our country to be safe.”

“Some have said that ‘he forced our withdrawal to save his country’,” he added. “This is not true. They left with their weapons, while raising the victory sign. I saw them off at the port and they went abroad to continue to fight for their cause. Sharon’s attack was destructive. Looking out from my house, I could see flames from all sides.”

“I clashed several times with Abou Ammar [Arafat]. And yet, when the time came for him to leave, he dropped by to bid me farewell and express his gratitude,” added Salam.

George Hawi

Hawi recalled three positions that were prevalent and shared by the Palestinians and Lebanese leadership when the Israeli army invaded Beirut and hammered it with shelling.

The first believed that there was no point in continuing the fight and everything should be done to rescue whatever could be salvaged.

The second was a more romanticized view that spoke of transforming Beirut into a new Stalingrad. Secretary General of the Popular Front for the Liberation of Palestine (PFLP) George Habash shared this view and so did Hawi during the first month of the invasion.

The third was more realistic and realized that the fighting should aim to improve the conditions of a political solution. This position was reinforced when it appeared that the international community had no hope in stopping the Israeli war machine, said Hawi.

He denied that he, along with Mohsen, led to the prolongation of the war because they were awaiting the Soviet position. “In the beginning, Mohsen adopted a hard line just as we did. He later adopted a more realistic approach,” Hawi added. “The truth is Arafat was the most pragmatic of us all.”

When asked who he believed opposed the withdrawal from Beirut, he replied: “No one really. Not the Palestinians or the Lebanese.”

Ahmed Jibril

Secretary General of the PFLP-General Command (PFLP-GC) Ahmed Jibril’s account of events doesn’t align with others. One time when I was in Damascus, I asked him about his version of events of that summer of 1982.

When he sensed that the Palestinians were in agreement over withdrawing from Beirut, Arafat called for a meeting of Lebanese leaders, including Walid Jumblatt, AMAL movement leader Nabih Berri, Ibrahim Koleilat, Mohsen Ibrahim, Abdulrahim Murad and Toufic Sultan.

Arafat revealed that he had received an offer to pull out from Beirut, but said he could not give an answer before first consulting with Palestinian and Lebanese officials. At the meeting, Ibrahim, Koleilat and Murad said: “We gave you the whole of Lebanon, so give us Beirut.” Jumblatt chose not to say anything negative or positive.

Berri appeared to support the withdrawal, while others noted that the Palestinians chose not fight Israel from southern Lebanon, so why were they opting to fight from Beirut? The meeting was very tense and like a stab in the back, said Jibril.

My questions rekindled the hatred between Arafat and Jibril. “Arafat chose to quit Beirut, but he was searching for an excuse to avoid leaving through Syria. (...) Along with George Habash and Nayef Hawatima, we sent a message to then Syrian Foreign Minister Abdul Halim Khaddam. After 24 hours, we received a reply through a cable,” recalled Jibril.

He explained that members of the Baath had met with President Hafez al-Assad and agreed to receive more Palestinians. “I read out the message to Arafat, who replied: ‘I do not work through cables. The Syrian government must release a formal statement about the matter.’”

“We clashed. I told Arafat: ‘It’s been three months, and you haven’t missed an opportunity to criticize Syria, directly or indirectly. Syria is waging a battle with us. It has dispatched 90 jets and thousands of tanks, armored vehicles and soldiers, while you make contact with various Arab countries. Do you want to clash with Syria?’ The meeting became strained and quickly came to an end.”

Jibril again contacted Damascus and hours later Syrian state radio announced its agreement to host the Palestinians. He met with Arafat to relay the message. The Palestinian leader said: “Do you think I will credit our resistance for three months and victory in Beirut to the Syrian leadership?”

A year later, Arafat would return to Tripoli to provoke Syria. “We surrounded him, but he eventually left. Then Syrian chief-of-staff Hikmat al-Shehabi would later tell me, I wish you had finished him off there and relieved everyone of him,” said Jibril.

The hatred went farther than that. Jibril later told me he hoped Arafat would have been assassinated by a Palestinian, the same way Egyptian President Anwar al-Sadat was killed by Egyptian extremist Khalid Islambouli. I asked him if he had ever sent someone to kill Arafat, he replied: “I am certain a Palestinian Khalid Islambouli will eventually rear his head.”

George Habash

Meeting with Habash in Damascus, he told me how the majority of the Palestinian leaders, including himself, supported the withdrawal from Beirut. The decision became the best option after Israel tightened its siege and it became necessary to take into account the suffering of the Lebanese people.

“Of course, I chose to head to Damascus because I knew I could continue the armed struggle there, rebuild the military capabilities and take part in the armed resistance against the Israeli occupation of Lebanon,” he said.

“I was focused on the political compromise Arafat would have to make after leaving Beirut. He told us bluntly that we had no choice but to accept the American initiatives to resolve the Palestinian cause because the fight against Israel according to his [Arafat’s] rules was no longer possible after the loss of the Lebanese arena,” he added.

Salah Khalaf

I once met prominent Palestinian leader Salah Khalaf in Tunisia. He was forlorn and told me that the decision to leave Beirut was dictated by several military, political and humanitarian factors.

The Palestinian resistance was not fighting on its own land, he recalled. It had to take into account the needs of the locals and their fears. Moreover, no one truly believed that the Security Council and Soviet Union could deter Israel. “Given those circumstances, taking a suicidal decision was out of the question. So, we had no choice but to withdraw,” he revealed.

“We were unable to find a substitute to Beirut after we pulled out from it. There can be no substitute to this city that gave so much to the Palestinian revolution. Along with the Lebanese, we wronged the city, inadvertently at times. If only we had been better at understanding the fears of our rivals and circumstances of our allies,” he remarked.

“After Beirut, we had no choice but to look internally. I’m not exaggerating when I say that we criminally wronged Beirut. We wasted this glittering gem. I often wonder how the Lebanese people themselves allowed Beirut to deteriorate to such an extent. They took part in the crime as well, also inadvertently at times. There was an inevitable price to pay for the loss of Beirut,” he said.



What Lies Ahead for Ukraine’s Contested Zaporizhzhia Nuclear Power Plant?

A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
TT

What Lies Ahead for Ukraine’s Contested Zaporizhzhia Nuclear Power Plant?

A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)
A Russian service member stands guard at a checkpoint near the Zaporizhzhia Nuclear Power Plant before the arrival of the International Atomic Energy Agency (IAEA) expert mission in the course of Russia-Ukraine conflict outside Enerhodar in the Zaporizhzhia region, Russian-controlled Ukraine, June 15, 2023. (Reuters)

The Zaporizhzhia nuclear power plant, Europe's largest, is one of the main sticking points in US President Donald Trump's peace plan to end the nearly four-year war between Russia and Ukraine. The issue is one of 20 points laid out by Ukrainian President Volodymyr Zelenskiy in a framework peace proposal.

Here are some of the issues regarding the facility:

WHAT ROLE MAY THE US PLAY?

Russia took control of the plant in March 2022 and announced plans to connect it to its power grid. Almost all countries consider that it belongs to Ukraine but Russia says it is owned by Russia and a unit of Russia's state-owned Rosatom nuclear corporation runs the plant.

Zelenskiy stated at the end of December that the US side had proposed joint trilateral operation of the nuclear power plant with an American chief manager.

Zelenskiy said the Ukrainian proposal envisages Ukrainian-American use of the plant, with the US itself determining how to use 50% of the energy produced.

Russia has considered joint Russian-US use of the plant, according to the Kommersant newspaper.

WHAT IS ITS CURRENT STATUS?

The plant is located in Enerhodar on the banks ‌of the Dnipro River and ‌the Kakhovka Reservoir, 550 km (342 miles) southeast of the capital Kyiv.

The Zaporizhzhia nuclear power plant has ‌six ⁠Soviet-designed reactors. They were ‌all built in the 1980s, although the sixth only came online in the mid-1990s after the collapse of the Soviet Union. It has a total capacity of 5.7 gigawatts, according to an International Atomic Energy Agency (IAEA) database.

Four of the six reactors no longer use Russian nuclear fuel, having switched to fuel produced by then-US nuclear equipment supplier Westinghouse.

After Russia took control of the station, it shut down five of its six reactors and the last reactor ceased to produce electricity in September 2022. Rosatom said in 2025 that it was ready to return the US fuel to the United States.

According to the Russian management of the plant, all six reactors are in "cold shutdown."

Both Russia and Ukraine have accused each other of striking the nuclear plant and of severing power lines to the plant.

The plant's equipment is powered by ⁠electricity supplied from Ukraine. Over the past four years these supplies have been interrupted at least eleven times due to breaks in power lines, forcing the plant to switch to emergency diesel generators.

Emergency generators ‌on site can supply electricity to keep the reactors cool if external power lines are cut.

IAEA ‍Director General Rafael Grossi says that fighting a war around a nuclear ‍plant has put nuclear safety and security in constant jeopardy.

WHY DOES RUSSIA WANT ZAPORIZHZHIA PLANT?

Russia has been preparing to restart the station but ‍says that doing so will depend on the situation in the area. Rosatom chief Alexei Likhachev has not ruled out the supply of electricity produced there to parts of Ukraine.

Oleksandr Kharchenko, director of the Energy Research Center in Kyiv, said Moscow intended to use the plant to cover a significant energy deficit in Russia's south.

"That's why they are fighting so hard for this station," he said.

In December 2025, Russia's Federal Service for Environmental, Technological and Nuclear Supervision issued a license for the operation of reactor No. 1, a key step towards restarting the reactor.

Ukraine's energy ministry called the move illegal and irresponsible, risking a nuclear accident.

WHY DOES UKRAINE NEED THE PLANT?

Russia has been pummeling Ukraine's energy infrastructure for months and some areas have had blackouts during winter.

In recent ⁠months, Russia has sharply increased both the scale and intensity of its attacks on Ukraine's energy sector, plunging entire regions into darkness.

Analysts say Ukraine's generation capacity deficit is about 4 gigawatts, or the equivalent of four Zaporizhzhia reactors.

Kharchenko says it would take Ukraine five to seven years to build the generating capacity to compensate for the loss of the Zaporizhzhia plant.

Kharchenko said that if Kyiv regained control of the plant, it would take at least two to three years to understand what condition it was in and another three years to restore the equipment and return it to full operations.

Both Ukrainian state nuclear operator Energoatom and Kharchenko said that Ukraine did not know the real condition of the nuclear power plant today.

WHAT ABOUT COOLING FUEL AT THE PLANT?

In the long term, there is the unresolved problem of the lack of water resources to cool the reactors after the vast Kakhovka hydro-electric dam was blown up in 2023, destroying the reservoir that supplied water to the plant.

Besides the reactors, there are also spent fuel pools at each reactor site used to cool down used nuclear fuel. Without water supply to the pools, the water evaporates and the temperatures increase, risking fire.

An emission of hydrogen from a spent fuel pool caused an explosion in Japan's Fukushima nuclear disaster in ‌2011.

Energoatom said the level of the Zaporizhzhia power plant cooling pond had dropped by more than 15%, or 3 meters, since the destruction of the dam, and continued to fall.

Ukrainian officials previously said the available water reserves may be sufficient to operate one or, at most, two nuclear reactors.


Egypt, Trump Reaffirm Strategic Alliance in 2025 amid Regional Turmoil

Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
TT

Egypt, Trump Reaffirm Strategic Alliance in 2025 amid Regional Turmoil

Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)
Egyptian President Abdel Fattah al-Sisi meets President Donald Trump ahead of a world leaders' summit on ending the Gaza war, in Sharm el-Sheikh, Egypt, October 13, 2025. (Reuters)

After months of speculation over the trajectory of Egyptian-US relations, fueled by persistent talk of strain and an impending rift, a high-level meeting between President Donald Trump and President Abdel Fattah al-Sisi in Sharm el-Sheikh reaffirmed the resilience of the strategic alliance between Cairo and Washington, even as the region remains in turmoil.

The meeting followed a turbulent period marked by Trump’s adoption of a proposal to relocate Gaza’s population, an idea firmly rejected by Sisi and one that prompted warnings of a diplomatic crisis between the two longtime allies.

The subsequent signing of a Gaza peace agreement in Sharm el-Sheikh sent a clear signal that, despite sharp disagreements over policy, the foundations of the bilateral relationship remain intact.

Early in Trump’s second term, media reports said Sisi had scrapped plans to visit Washington. As the year draws to a close, speculation has said that the visit may happen. Trump has acknowledged Sisi as a friend and said he would be happy to meet him as well.

Trump’s election victory late last year raised Egyptian hopes of strengthening the strategic partnership. Sisi voiced that expectation in a congratulatory post on X, stating that he looked forward to working together with Trump to achieve peace, preserve regional peace and stability, and strengthen the strategic partnership.

Those hopes were tested when Trump floated a plan to “clean out Gaza” and relocate its residents to Egypt and Jordan. Cairo rejected the idea outright, mobilized international opposition, unveiled an alternative plan for Gaza’s reconstruction and hosted an emergency summit on the issue in March.

Limited public engagement

David Butter, a research fellow in the Middle East and North Africa program at Chatham House, noted that the striking feature of Egypt-US ties over the past year has been their low public profile.

Aside from Trump’s appearance in Sharm el-Sheikh, there was not much happening in the open, he told Asharq Al-Awsat.

Amr Hamzawy, an Egyptian political scientist and director of the Middle East program at the Carnegie Endowment for International Peace, described the first year of Trump’s second term as difficult for bilateral relations.

He said it began with talk of displacement and a “Middle East Riviera” in Gaza, but Egyptian diplomacy succeeded in shifting the trajectory.

Trump’s peace plan, he said, ultimately signaled rejection of displacement and spoke of security and political tracks for Gaza and a broader political process for the Palestinian issue, though details remain unclear.

Hamzawy added that the year opened from a tough starting point that followed what he called President Joe Biden’s hesitant stance on Gaza, when displacement was first discussed.

After nearly a year of Egyptian political and diplomatic effort, he said, displacement dropped from Washington’s agenda, even if it remains a risk that cannot be ignored.

Historically, Egypt has been a pivotal state for US national security, given its geography, demographic weight and diplomatic role, according to a recent report by the Congressional Research Service.

Gaza, the main test

The Gaza war shaped Egyptian-US relations during Trump’s first year back in office. Washington backed Egyptian-Qatari mediation to halt the war. US Secretary of State Marco Rubio thanked Cairo after a truce was reached between Israel and Hamas in January.

When hostilities resumed, however, Egypt faced complex diplomatic choices with both Washington and Israel. It rejected Trump’s call to resettle Gaza’s population, while its reconstruction plan failed to gain US or Israeli acceptance.

Cairo also drew criticism from Trump for declining to join US strikes against Yemen’s Houthis, the Congressional Research Service (CRS) revealed.

Butter noted that ties with the Trump administration were strained over Gaza after Sisi canceled a Washington visit early in the year, following Trump’s “Middle East Riviera” remarks, which left contacts at a minimum.

He said Trump’s Sharm el-Sheikh visit, the signing of the Gaza agreement and the celebration of his plan’s success offered a chance to reset relations. Egypt, he added, has become indispensable to Trump’s administration in Gaza.

Hamzawy said Gaza dominated the first year of Trump’s term, giving Egypt a chance to restore its standing with US and European decision-makers as a key mediator. Cairo put its vision on the table, he said, shifting US thinking toward parallel security and political tracks and from talk of disarmament to limiting weapons.

Throughout the year, Egypt publicly counted on Trump to end the Gaza war. In July, Sisi urged him in a televised address to press for a halt, saying Trump was capable of doing so.

Analysts Daniel Byman and Jon Alterman wrote in Foreign Policy that Egypt is indispensable to international responses to the Gaza war, even if it remains a difficult partner for Washington and Israel. The conflict, they said, restored diplomatic focus on Egypt and strengthened its leverage.

Sara Kira, director of the European North African Center for Research, said relations in Trump’s second term differ from his first. The earlier term saw broad alignment and personal warmth from Trump, particularly on counterterrorism, she said. The second term has been marked by divergence.

That surfaced in April when Trump called for free passage for US commercial and military vessels through the Suez Canal in exchange for US efforts to protect the waterway.

Positive signals despite differences

Despite disagreements over Gaza, there were positive signs elsewhere. Early in the year, the US State Department froze new funding for most aid programs worldwide, exempting humanitarian food programs and military aid to Israel and Egypt.

Washington did not include Egypt on a travel ban list issued in June. Trump said Egypt was a country with which the United States dealt closely and that things there were under control. Egypt was also spared higher US tariffs. Cairo has repeatedly stressed the depth and resilience of the strategic relationship.

Kira said Egypt exerted maximum pressure to achieve peace and stop the Gaza war, eventually convincing Washington of its approach and reaching a peace agreement in Sharm el-Sheikh. She said Egypt acted pragmatically and astutely, reading Trump’s personality and US interests.

As talks on the second phase of the Gaza agreement stall, Egypt continues to rely on the Trump administration to advance its plan. Cairo remains in contact with Washington and is working with it to prepare a donor conference for Gaza’s reconstruction, which has yet to receive sufficient momentum from the Trump administration.

The dialogue extends beyond Gaza to Libya, Sudan, Lebanon and Iran, as well as water security, led by Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), which Egypt fears could affect its Nile water share.

GERD

In mid-June, Trump stirred controversy in Egypt when he wrote on Truth Social that the United States had “stupidly” funded the dam Ethiopia built on the Blue Nile, triggering a severe diplomatic crisis with Egypt.

In August, the White House released a list of Trump’s foreign policy achievements, which included a purported agreement between Egypt and Ethiopia over the dam.

Trump has repeatedly spoken of his administration’s efforts to resolve the dispute, but those claims have yet to translate into concrete action.

Hamzawy said there is an opportunity for Washington to mediate and revive an agreement reached near the end of Trump’s first term.

Charles Dunne of the Arab Center Washington DC wrote recently that Trump’s stance may please Cairo but could also produce adverse outcomes if Washington does not assume a mediation role.

The United States hosted talks with the World Bank in 2020 during Trump’s first term, but they failed after Ethiopia refused to sign the draft agreement.

Military ties endure

Military cooperation continued largely as usual. Since 1946, the United States has provided Egypt with about $90 billion in aid, with a sharp increase after 1979, which successive administrations have framed as an investment in regional stability, according to the CRS.

For more than a decade, Congress has imposed human rights conditions on part of Egypt’s aid.

Between fiscal years 2020 and 2023, the Biden administration and Congress withheld approximately $750 million in military funding. Trump’s technical annex to the proposed fiscal 2026 budget seeks $1.3 billion in military assistance for Egypt without conditions, the CRS said.

Hamzawy said the administration is far from imposing conditionality, noting that relations rest on mutual interests between a major power and a positively influential middle power.

Since the Gaza war, the Biden and Trump administrations have accelerated US arms sales to Egypt. The State Department notified Congress of military sales totaling $7.3 billion. In July, the Pentagon announced that the State Department had approved the sale of an advanced air defense missile system to Egypt, valued at approximately $4.67 billion. Egypt also hosted the Bright Star military exercises in September.

Kira said ties with Washington are driven by interests and that Cairo has positioned itself as a core regional player.

Hamzawy said Egypt occupies a central place in US Middle East thinking, as Washington needs a spectrum of allies, with Egypt at the heart of that network.


Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
TT

Why Metal Prices are Soaring to Record Highs

A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP
A salesman displays gold chains at an Indian jewelry store in September. Idrees MOHAMMED / AFP

Precious and industrial metals are surging to record highs as the year ends, driven by economic and geopolitical uncertainty, robust industrial demand and, in some cases, tight supply.

Below AFP examines the reasons for the surge in demand.

- Safe havens -

Gold and silver are traditionally seen as safe-haven assets, and demand has soared amid mounting geopolitical tensions, from US President Donald Trump's tariffs onslaught to wars in Ukraine and Gaza, as well as recent pressure by Washington on Caracas.

Investors are also uneasy about rising public debt in major economies and the risk of a bubble in the artificial intelligence sector.

These uncertainties are driving up gold and silver, with other metals now starting to see the impact as investors seek to diversify their portfolios, explained John Plassard, an analyst at Cite Gestion Private Bank.

"Metal is once again becoming insurance rather than just a speculative asset," he told AFP.

- A weak dollar -

Traditional safe havens like the dollar and US Treasuries have become less attractive this year.

Uncertainty around Trump's presidency and the prospect of further Federal Reserve interest rate cuts, have weakened the dollar, reducing its appeal to investors.

As a result, many investors are turning to gold and silver.

Gold has climbed more than 70 percent this year and passed $4,500 an ounce for the first time on Wednesday, while silver reached a record high of $72 an ounce, with prices up about 2.5 times since January.

A weak dollar is also boosting industrial metals, since commodities priced in dollars become cheaper for buyers when the currency falls.

- Fresh demand -

Industrial demand has surged in recent months, driven by the rise of artificial intelligence and the energy transition.

Copper, used for solar panels, wind turbines, electric vehicle batteries and data centers, has seen strong gains as a result.

Prices hit a record on Wednesday, topping $12,000 a ton, helped further by China, the world's largest copper consumer, announcing new measures to boost demand.

Aluminium, a cheaper alternative to copper, and silver are also benefiting from the AI boom and the shift to renewable energy.

Platinum and palladium, used in car catalytic converters, have also risen, reaching a record high and a three-year high respectively, after the European Union decided to allow sales of new internal combustion vehicles beyond 2035.

- Tight supply -

Copper prices have been lifted this year by fears of US tariffs, prompting companies to stockpile ahead of their introduction, with duties imposed on semi-finished products and potentially extending to refined copper.

Supply risks from disruptions at mines in the Democratic Republic of Congo, Chile and Indonesia have added to the price surge.

Physical markets for silver, platinum, and aluminium are also tight.

According to Ole Hansen, an analyst at Saxo Bank, thin holiday trading, which increases volatility, and investor fear of missing out have further amplified the rise at the end of the year.