Al-Sudani and Maliki: More than Just an Iraqi Cold War

Iraqi Prime Minister Mohammed Shia al-Sudani. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani. (Reuters)
TT

Al-Sudani and Maliki: More than Just an Iraqi Cold War

Iraqi Prime Minister Mohammed Shia al-Sudani. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani. (Reuters)

A cold war is brewing between Iraqi Prime Minister Mohammed Shia al-Sudani and former PM Nouri al-Maliki. They are forging ahead rapidly towards next year’s parliamentary elections. The rivalry between them will be fierce, unless they strike a deal, said officials from Maliki’s Islamic Dawa party and the ruling pro-Iran Coordination Framework.

Maliki is seeking to hold early elections, which is unlikely to happen, but observers said he is simply trying to pile pressure on al-Sudani. More important than the date of the elections is the electoral law itself, which the rivals can shape to suit their or Iraq’s interests.

As it stands, Maliki appears the more eager of the two to draft the new law. People who have worked with him in drafting proposals revealed that he is thinking more about setting up “traps” for al-Sudani, who is eying a second term in office, than about his own chances of victory in the new parliament.

Kingmaker

Maliki is seen as the maker of uncrowned kings. They are kings who work for him in service of an agenda that he kicked off in 2006 when he first became prime minister, replacing Ibrahim al-Jaafari who was “shunned by the Iranian-American equation in Iraq.”

Maliki honed his political skills in the past two decades. He learned how to maneuver and smoothly move from one camp to another, something he has grown particularly adept at. He is also known for his “strong sectarian leanings and paranoia,” which draws to him all “ambitious and anxious Shiites,” said people who have worked with and against him in the past 20 years.

Even after leaving government, Maliki remained the “godfather” of the Shiite political project in Iraq. He was always sought out by “sectarian” parties whenever the system in Iraq came under threat, even if the threat came from Shiites themselves.

Ultimately, Maliki has presented himself as the “savior of the Shiites in modern Iraq.” The last time he managed to bring them together was when Sadrist movement leader cleric Moqtada al-Sadr sought to turn against them and expel them from government when he tried to forge an alliance with the Sunnis and Kurds in 2020. Maliki’s image as the “sponsor of the deep Shiite state” in Iraq grew further with the formation of the Coordination Framework that allowed al-Sudani to come to power.

In fact, Maliki believes he is the sole representatives of the deep Shiite state. He expects his allies to not infringe on his “historic standing and leadership.” But what happens when a person, who Maliki himself had brought to power and shaped their political agenda, rebels against him? What if al-Sudani were to run for a second term in office?

‘Right’ man

Al-Sudani was an agricultural engineer working for the government in the Maysan province when the American forces occupied Iraq and ousted Saddam Hussein’s regime. Because he was a senior state employee and son of a dissident Shiite family, he was appointed coordinator between the city authority and ruling American administration in Baghdad.

Over the years, al-Sudani assumed various public posts. It was evident that he was skilled at maneuvering government work and withstanding its upheavals.

Maliki sensed that al-Sudani was the “right man” around whom he could form his successive governments. Al-Sudani was minister of industry and minerals, labor and social affairs, and human rights in three governments. Maliki viewed him as a “second-class” politician, but at least he was consistent in serving the “Shiite project” over the years.

In 2019, hundreds of thousands of Shiite youths took to the streets to protest against the government and al-Sudani jumped ship from the Dawa party to form his own small party, the Al-Furatayn, with the goal of joining the league of major Shiite figures. Two years later, he was named prime minister after much political wrangling.

In 2022, al-Sudani visited Hadi al-Ameri’s house with a list of commitments he was demanding of the Coordination Framework – the sponsors of his new government. However, Maliki – along with Qais al-Khazali, the leader of the Asaib Ahl al-Haq group – were ahead of him and had prepared their own list of commitments they expected al-Sudani to meet during his term in office.

The list handed to al-Sudani reflected Maliki’s way of thinking and how he viewed the new premier as “an agricultural engineer who was tasked with heading a government.”

Al-Sudani aspired to be much more than that. He kicked off his work as prime minister calmly as he dedicated the early days to erasing the legacy of his predecessor Mustafa al-Kadhimi – at least, these were the “instructions” coming in from the Framework.

Al-Sudani’s aspirations

Later, al-Sudani began to show strong signs of his aspirations. He presented himself and his ministers as being focused on services and development, securing an unprecedented state budget at the time.

The Framework saw no political threat in a government that offers services. In fact, it believed that such services “have no value when it comes to political balances and equations”, according to Shiite politicians.

Two years later, however, al-Sudani now has the loyalty of nearly 50 lawmakers who “effectively defected” from the Framework. The PM believed that any former lawmaker was a potential future partner in his political bloc in the next parliament.

He also formed alliances with three powerful province governors: Asaad Al-Eidani of al-Basra, Mohammed al-Mayahi of al-Kut and Nesayif Al-Khattabi of Karbala – all defectors of the Framework.

Asked about al-Sudani’s current influence in parliament, Shiite leaderships told Asharq Al-Awsat that he boasts around 60 MPs and even more could join him.

In March, Maliki made light of al-Sudani’s power in parliament, remarking that back in 2014, he [Maliki] won 103 seats in the legislature but still wasn’t named prime minister due to political bickering. “So, what do 60 seats mean? Nothing. Numbers are not enough,” he added.

So why the animosity towards al-Sudani? Maliki believes that al-Sudani is eating away at his own political power, using the tools of the “deep state”, and extending his hand to his own supporters to create new alliances outside of the current political equation and Coordination Framework – the most important alliance in the country.

Long- and short-term plans

Maliki believes that he was the one who made al-Sudani and he should be the one who controls his political fate.

And yet, Maliki cannot wage an open battle with al-Sudani because he is bound by the traditions of the right-wing Shiite movement in Iraq and the need to allow it to grow and prosper. Moreover, al-Sudani has managed to occupy a significant role in Iraq: enjoying Iranian and American consensus – the most enviable role a prime minister can dream of. Wasn’t that the same role Maliki played in his first term as premier?

In the long-term, what Maliki can do is set up a trap for his former colleague by drafting a new electoral law that strips the prime minister of any privileges. He effectively wants to deprive al-Sudani of the privileges Maliki enjoyed in 2010.

Sources revealed that elections experts have been working with Maliki for the past two months to draft the new law. Progress has been made, especially with Sunnis and Kurds joining the process.

Maliki is so determined to see al-Sudani fail that he is willing to draft a law that wouldn’t even secure him – Maliki – a victory.

In the short-term, he is trying to lure al-Sudani’s allies away from him. If he can’t, then he will set them up to fail. Decision-makers in the Framework said that when al-Sudani makes it to the final stages of the elections, he’ll be lucky if he manages to retain one of the powerful three governors by his side. Maliki is determined to remove them from their alliance with al-Sudani.

Learning from Maliki

Al-Sudani is aware that the Shiites will be confronted with a new dynamism in the next elections that could lead to the end of the Coordination Framework or shift to new hubs of influence. Al-Sudani is hoping to become the head of one of these spheres of influence.

Observers said the PM will counter Maliki’s attempts to undermine him by holding “arduous” talks with the Sunni and Kurds and that he may mull various settlements that may persuade them to abandon the former PM’s camp.

As for his allies, he will seek to hold on to them even though partnerships in Iraq are constantly shifting. He will seek to gain more Shiite support, especially among governors and the military.

Al-Sudani is learning from Maliki. One of the causes of the tumult in the Framework is due to the “arrogance of the founders and their annoyance with the boldness of their students,” said a leading Shiite figure. He added that al-Sudani may not be the sole mutinous member, but al-Khazali is paving his own path to break away from Maliki.

The Shiite figure believes that the balance is now tipped in al-Sudani’s favor because he has so far presented himself as a “trusted partner to main players in the region, including Iran.” He also supports “promising partnerships that are tied to agreements to uphold calm and form a new Middle East of which Iraq is a main foundation.”

Heated battle

As the government enters its final year in office, the cold war between al-Sudani and Maliki will become more heated. Observers believe that recent corruption scandals and the involvement of government officials in suspicious dealings is only the warmup for what’s to come.

Al-Sudani may have come on top in some rounds, but Maliki managed to score points. A Kurdish official explained that in recent months, the PM has tried to gain influence in the local governments in Diyala and Kirkuk by sponsoring agreements with winners in the local elections, but Maliki had the final say in naming the first governor, effectively annulling the agreements al-Sudani had reached.

A Sunni politician taking part in the secret negotiations to draft the electoral law said “electoral nooses” will now start being set up, predicting a changes in the Shiite political landscape that will impact Sunni and Kurdish forces.

Shiite politicians are however, concerned that the soon-to-be grinding battle between al-Sudani and Maliki will threaten the gains of the right-wing Shiite movement after two years of prosperity.

Ultimately, Maliki will not be opposed to al-Sudani heading a small bloc in parliament. “There’s nothing wrong with the likes of Ammar al-Hakim, Hadi al-Ameri and others holding ten parliamentary seats,” said a leading Framework member, explaining that the battle is “all about numbers” and controlling them to avoid any surprises.

The prevalent belief in the Shiite camp is that the traditional factors that used to influence the political scene in Iraq were fading, namely the Shiite Religious Authority and the Americans. Iran does wield influence and “prefers to intervene at the final moment after watching the scene unfold very closely and patiently.”

So, how will the cold war end? The Shiite leaders spoke of three outcomes: Either al-Sudani makes it to the end, or he strikes a deal with Maliki with the sponsorship of a third party, or one of them ends up with severe political injuries.



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.