Deadly Blows and Setbacks Deepened Hezbollah’s Crisis During War with Israel

Hezbollah supporters watch a televised speech delivered by Hezbollah Secretary-General Hassan Nasrallah in Dahieh in November 2019. (AFP)
Hezbollah supporters watch a televised speech delivered by Hezbollah Secretary-General Hassan Nasrallah in Dahieh in November 2019. (AFP)
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Deadly Blows and Setbacks Deepened Hezbollah’s Crisis During War with Israel

Hezbollah supporters watch a televised speech delivered by Hezbollah Secretary-General Hassan Nasrallah in Dahieh in November 2019. (AFP)
Hezbollah supporters watch a televised speech delivered by Hezbollah Secretary-General Hassan Nasrallah in Dahieh in November 2019. (AFP)

Months before his assassination, former Hezbollah Secretary-General Hassan Nasrallah believed that the “support war” his party had launched against Israel in October 2023 in support of Gaza would remain within the limits of the “rules of engagement”. He believed that Iran would not allow four decades of “Islamic resistance” in Lebanon to fall easy prey to the enemy.

However, a series of wrong calculations prevented the party from taking decisive decisions during the conflict, which by September 2024 had turned into an all-out war.

This report reveals how Israel’s assassination of major Hezbollah leaderships effectively cut off Nasrallah from knowing every detail of what was happening on the ground. Field leaders appointed to replace the slain ones did not have enough information. Others have speculated that the party’s problem did not lie in the commanders, but in the loss of rocket launcher operators, who were a “rare commodity” in the party and the war.

Asharq Al-Awsat interviewed a number of Lebanese and Iraqi figures, who were in touch with the Hezbollah leadership in 2024, for this report to help fill in some gaps in the various narratives that have emerged related to the buildup to Nasrallah’s assassination in September 2024.

Lebanese authorities say 3,768 people were killed and over 15,000 injured in the war, while Israeli figures have said that Hezbollah lost around 2,500 members in over 12,000 strikes.

War within limits

In the first weeks of the war, Hezbollah was convinced that the “rules of engagement” on the ground would remain in place and that it would not turn into an all-out war, revealed a Lebanese figure who was in close contact with party military commanders.

Speaking to Asharq Al-Awsat on condition of anonymity, he stated that Nasrallah would tell meetings with influential party officials that the war would be limited to border skirmishes with Israel, as had happened in the past.

One leading Hezbollah member said the party believed that Iran would be able to “set the deterrence in the war and reach a ceasefire through maneuvering in its negotiations” with the West, added the Lebanese figure.

“The party was waiting on Iran to restore balance in the war that was tipped in Israel’s favor and to eventually reach a ceasefire without major losses,” he went on to say.

Iranian officials, led by Supreme Leader Ali Khamenei, have always said that Tehran would not abandon its allies. Nasrallah himself had always credited Iran with supporting his party financially and with weapons.

Three commanders

Speaking to Asharq Al-Awsat from his residence in Beirut’s southern suburbs, a Lebanese Shiite cleric said Hezbollah was slow in realizing that it was headed towards all-out war with Israel.

The cleric, who earned his religious studies in Iraq’s al-Najaf, lost four members of his family during the war.

Nasrallah, he added, lost key commanders who were his eyes and ears on the field.

Whenever Israel killed a field commander, it was as if Nasrallah “lost an eye that helped him see clearly. He was obsessed with following up on field developments” and Israel was taking these tools away from him, he revealed.

The greatest blows to Nasrallah were the losses of commanders Taleb Abdullah, Ibrahim Akeel, and Wissam al-Taweel.

Taweel was a prominent commander in the party’s al-Radwan unit. Israel killed him on January 8, 2024. Abdullah was responsible for Hezbollah’s operations in the central sector of the border with Israel and stretching to the Litani river. Israel killed him on June 11, 2024, in what the cleric said was the harshest blow to Nasrallah. Akeel was commander of Hezbollah’s military council. Israel killed him on September 20, 2024.

In the end, Nasrallah lost these three commanders and a state of chaos ensued in the operation rooms. “Other commanders on the field complained of how decisions were being improvised because members were acting out of alarm and suspicion instead of discipline,” said Lebanese sources.

Despite these major losses during a period of eight months, Nasrallah and his entourage continued to think inside the box and within the rules of engagement, still ruling out that an all-out war would happen.

Lebanese journalist Ali al-Amin said Nasrallah believed that the party was still capable of militarily deterring Israel and preventing a comprehensive war. He was ultimately wrong.

(From left to right) Slain Hezbollah commanders Ibrahim Akeel, Wissam al-Taweel and Taleb Abdullah.

Secrecy

Hezbollah’s problem lies in Hezbollah itself and how its commanders operate.

Lebanese sources explained that the field commanders killed between January and November 2024 were part of a disconnected chain of command, in that they were not a whole that relayed expertise and information smoothly.

The sources explained further: “When a commander is killed, his replacement does not have access to his predecessor’s field information and details, which are held in secrecy. This was one of Nasrallah’s problems in dealing with the war.”

More interviews with Asharq Al-Awsat revealed that each commander built his own network of relations, methods and information based on his own personal experience as an individual. When he is killed, this network dies with him, along with information about weapons caches or field plans.

At one point, Israeli drones hovering over a Hezbollah unit would have more information about the party than the newly appointed commander, said the cleric.

Israel’s infiltration

Nasrallah first started having doubts that Israel had breached Hezbollah after the assassination of Saleh al-Arouri, former Hamas deputy politburo chief, on January 2, 2024. Wissam al-Taweel was killed that same month.

The cleric said Nasrallah had not expected these assassinations and notably kept silent after they happened.

Later, he chose defense instead of offense, said Al-Amin. He revealed that field commanders had urgently requested a meeting with Nasrallah to call on him to launch an all-out war, because Israel was hunting down their members. Nasrallah adamantly refused.

Instead, the party became more isolated and began having deep doubts. The cleric explained that this is how Shiite movements in particular behave. They isolate themselves for internal reflection.

Security sources said that at the same time, Hezbollah reviewed its communications networks in the hopes of finding the Israeli breach.

A prominent Shiite figure, who has been in contact with Hezbollah since 2015, told Asharq Al-Awsat that the channels of communication with the party changed several times as more and more assassinations took place in Lebanon.

“We would come in contact with a new person every time we needed something from Dahieh (Beirut’s southern suburbs and a Hezbollah stronghold),” he added.

In August 2024, the Iranians asked Iraqi factions to support Hezbollah in its war. The Iraqi leader said they were instructed to make media statements that they were ready to go to war. A month later, Iraq’s Kataib Sayyid al-Shuhada faction said it would send 100,000 fighters to the Lebanese borders, but none did.

Pager operation

The party grew more anxious to uncover how Israel had breached it. Then came the devastating pager operation in September.

The attack isolated leaders from each other and their field networks. Communications within the party were almost dead and at some point, the remaining leaderships even gave up trying to find out where the breach was from.

Following the attack, field units did not hear anything for days from their commanders, revealed the cleric. It took the command a long time to resume contacts.

During that time, a military commander asked Nasrallah if the rules of engagement still stood. Nasrallah did not give a definitive answer, which was unusual for him, according to information obtained by Asharq Al-Awsat.

Nasrallah realized that he was now in an open war that he did not want, but it was already too late, revealed sources from leading officials who had attended important meetings.

Political science professor Ali Mohammed Ahmed tried to explain why Hezbollah refused to change its course of action. He said that maintaining the rules of engagement would ultimately not fall in Israel’s favor.

But what really tipped the war in its favor was its superior technology that Hezbollah had not taken into account.

Despite major losses during a period of eight months, Nasrallah and his entourage continued to think inside the box. (AFP)

The final scene

On the day of his assassination on September 27, Nasrallah headed to Dahieh with deputy Quds Force commander in Lebanon Abbas Nilforoushan. We will never know what they discussed. They headed to an underground Hezbollah compound and soon after Israel pounded the site with tons of bunker buster bombs.

Tons of questions were raised the day after in Dahieh and everywhere.

Looking at photos of his slain relatives, the Lebanese cleric said: “It took Hezbollah supporters a long time to recover from the shock. When they did, they asked, ‘who let down whom? The party or Iran? The resistance or Wilayet al-Faqih?’”

Ahmed said Hezbollah operated in a single basic way: it could not quit a war imposed on it, and so, it fought on.

Al-Amin stressed that Nasrallah would never have opened the “support front” without backing from Iran and his conviction that Israel would take into account threats from Tehran’s proxies in Lebanon, Iraq and Yemen.

However, the successive military and security setbacks led to a state of disarray and Nasrallah effectively cut the connection between Iran and Hezbollah, he added. Eventually, both sides realized that they had fallen into a trap.

Ahmed underlined one important development that took place early on during the war. Israel killed the strategic rocket launcher operators. The operators are a “rare commodity” and difficult to replace.

Hezbollah’s problem did not lie in its loss of field commanders, but the rocket operators, he said.

When the party launched hundreds of rockets at Israel a day before the ceasefire took effect, “we realized that it succeeded in replacing the slain operators,” he added.

“No one let down anyone. The problem lies in both Iran and Hezbollah and how they seemingly could not move on from the October 7, 2023 attack. Time was moving, but they were not,” he stated.

Iraqi researcher Akeel Abbas explained that the party and Iran did not grasp the extent of the major change that was taking place, even after Israeli Prime Minister Benjamin Netanyahu said that October 7 was like his country’s September 11.

“Everyone understood that the old rules no longer stood and that new ones were being imposed by force,” he told Asharq Al-Awsat.

“Iran was incapable of keeping pace with the major changes Israel was creating. It needed more time to prepare for such a largescale confrontation,” he remarked.



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)
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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)
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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
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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.