Amr Moussa: Israel Reacted With Negativity to Arab Peace Initiative

Amr Moussa: Israel Reacted With Negativity to Arab Peace Initiative
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Amr Moussa: Israel Reacted With Negativity to Arab Peace Initiative

Amr Moussa: Israel Reacted With Negativity to Arab Peace Initiative

In the fourth episode of excerpts from the biography of former Arab League Secretary-General Amr Moussa - published by Dar El-Shorouk and edited and documented by Khaled Abu Bakr – Asharq Al-Awsat reviews Moussa’s efforts and the work of the Arab League on the Palestinian file.

In his upcoming book, “The Years of the Arab League”, Moussa dedicates two chapters of 66 pages to talk about the birth of the Arab Peace Initiative at the 2002 Beirut Summit, launched by the late Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz, the Palestinian division between Fatah and Hamas over the Palestinian file, the Annapolis conference for peace, and then the Arab division in light of the aggression on Gaza in 2009.

In these excerpts of the first chapter, Moussa narrates the details of the Arab Peace Initiative and his role in drafting some of its provisions to overcome some of the differences over it.

He says that he assumed the position of Arab League Secretary-General while the second Palestinian Intifada was ongoing. The Israeli intransigence was continuous and even escalating, so was the stalemate paralyzing the “peace process.” Since US President George W. Bush officially assumed office on Jan. 20, 2001, until the events of Sep.11 of the same year, his administration did not present any political initiative to address the Israeli-Palestinian conflict. Moussa says that the US administration regarded the Palestinian uprising as acts of violence, which should be only addressed with security measures.

However, things changed after 9-11, Moussa recounts.

He says that after the attacks in New York, while the American forces were completing their preparations for the invasion of Afghanistan and the US administration was busy mobilizing a wide international coalition to support the “war on terror”, Bush declared that the “establishment of a Palestinian state has always been part of the American vision as long as Israel’s right to exist is respected…”

The former Arab League secretary-general says in this regard: “In fact, as soon as I heard those statements, which are the first by Bush on a Palestinian state, I considered them as nothing more than a flawed operation, with its meanings and goals; at that time, I was aware that the man needed the support of Arabs and Muslims in his next war against some of their countries, and therefore, he had no objection to flirting with them on the central issue, which is the Palestinian cause. What confirmed my conclusion is that nearly five days after these statements, specifically on Oct. 7, 2001, the United States began its war on Afghanistan.”

Friedman and the Birth of the “Arab Initiative”

Moussa recounts that Thomas Friedman, a famous columnist for The New York Times, published on Feb. 6, 2002, a letter to Arab leaders purportedly on behalf of US President George W. Bush - under the title, “Dear Arab League.”

The letter says: “You’re the ones with the power to really reshape the diplomacy, not me. And here is my advice for how to do it. You have an Arab League summit set for March in Lebanon. I suggest your summit issue one simple resolution: “The 22 members of the Arab League say to Israel that in return for a complete Israeli withdrawal to the June 4, 1967, lines -- in the West Bank, Gaza, Jerusalem, and on the Golan Heights -- we offer full recognition of Israel, diplomatic relations, normalized trade, and security guarantees. Full peace with all 22 Arab states for full withdrawal.”

Moussa says that less than a week later, Friedman met Prince Abdullah, then crown prince, on his ranch near Riyadh. The American journalist wrote the details of that interview, which included the announcement for the first time of what was known as the “Prince Abdullah’s Peace Initiative in the Middle East”, before it was adopted by 22 Arab countries at the Beirut Summit on March 28, 2002, to become the “Arab Peace Initiative.”

“For my part, I say that the content of Friedman’s letter was preceded by a long discussion that extended throughout my last year as Minister of Foreign Affairs of Egypt and first year as Secretary-General of the Arab League, between me and him (Friedman) in Davos, on the best and most effective ways to lay the foundations for a balanced peace that takes into account the basic needs of both parties.”

Moussa adds: “Prince (King) Abdullah was the only one who had the status that qualifies him to present the Arab initiative… He had tremendous credibility with Arab public opinion, all Arab governments, and the world, and hence his proposal or initiative was a historic step that deserves full support.”

Syrian-Lebanese pressure to dicker over the initiative

Moussa says that the Syrians were not comfortable with the initiative of Prince Abdullah, as he did not consult with them before announcing it in The New York Times.

“I think that the Emir set his sights on (the late Egyptian President Anwar Sadat’s) experience with the Syrians. He decided not to consult or coordinate with them before formulating the initiative, for fear that they would hamper it before its announcement.

Moussa adds that the Syrians did not openly declare their anger, but focused their efforts on criticizing the “full normalization”, which was mentioned in the initiative.

“At the same time, the Syrians brilliantly rushed to use the card of the “Palestinian refugees” and “the right of return”, which was not mentioned in the published details of the initiative. They were well aware of the Palestinian and Lebanese sensitivity to this issue because some Lebanese sects believe that the settlement of about 350,000 Palestinian refugees, most of whom are Sunni Muslims, distorts the demographic balance in Lebanon.”

Moussa continues: “On March 3, 2002 (prior to the Beirut summit and perhaps a prelude to it), Bashar Al-Assad made an official visit to Beirut. It was the first visit of a Syrian head-of-state to the Lebanese capital in more than fifty years. During the visit, Assad and Lebanese President Emile Lahoud issued a joint statement in which they did not explicitly refer to Prince Abdullah’s initiative, but said: “A comprehensive settlement with Israel must allow the return of Palestinian refugees to their homes and the removal of Israeli settlements in the West Bank and Gaza.”

After Assad’s visit, the Saudis quietly withdrew the term “full normalization” from the official statements paving the way for the initiative. In this context, on March 10, Foreign Minister Saud al-Faisal described the initiative as offering Israel “complete peace” in exchange for withdrawal to the 1967 borders.

The 2002 Beirut Summit

“On the morning of the opening of the Beirut Summit on March 27, 2002, Prince Saud Al-Faisal invited me to an early breakfast (about an hour before the arrival of the Minister of Foreign Affairs of Syria, Faruq Al-Sharaa, for the same invitation). I noticed that he wanted to be alone with Saud… I had to formulate the initiative in its final form, leaving the issue of refugees and normalization until the end of the Syrian-Saudi talks. I sat writing at a distant table, but in the same hall. I intended to write the text in the presence of Syria, and to present the text to Saud in the presence of Sharaa.”

Moussa continues: “We were on the sixth floor of the famous Phoenicia Hotel in Beirut, and in the hall dedicated for VIP guests… I saw tension on Farouk Al-Sharaa’s face and little patience with Saud…”

“The truth is that Syria’s position added to the initiative and did not weaken it. I do not see that Syria was opposed to the idea of the initiative in itself, and I also assert that it was keen not to clash with (King) Abdullah. The important thing is that after the understanding that took place between Prince Saud and Farouk Al-Sharaa, I joined them… A discussion took place about the final wording, and Prince Saud said that Amr Moussa would be in charge of finalizing it.”

“I said that I will quickly prepare it and present it to each of them - perhaps while they are sitting here - before we print it and present it to the other ministers… Saud quickly viewed it and agreed to it, while Farouk al-Sharaa read it carefully, then stopped at the expression, “normal relations”, in a paragraph that says: “Establishing normal relations with Israel within the framework of this comprehensive peace.”

I told him: This is less than the complete normalization, which you have reservations about.” So he kept silent and did not comment, which I considered as a consent to the wording.”

Moussa recounts how Syria and Lebanon were opposed to the broadcasting of a speech by Yasser Arafat, who was besieged in Ramallah. He says he was frustrated when he saw that the position of the summit or some of its members was not sound at all, neither in terms of form nor in content, and made Israel smile sarcastically at the attitude of the Arabs towards the Palestinian President.

A negative Israeli-American response

Moussa says he did not expect a positive response from the Israelis to the Arab initiative.

“Because it will lure them into negotiating with the Arabs as a group on the Palestinian issue, a position that they have always rejected. The second reason that made me rule out a positive response from Israel is that the initiative is selling them “full normalization”… in exchange for the Arab land and the borders of June 4, 1967. In fact, based on my experience, the Israeli strategy seeks to win “free normalization” from the Arabs without the need to forfeit the land that is important to its national security.”

The former Arab League secretary-general says that he was surprised by the tepid American response to the initiative “even though many US sources and institutions were pushing for its issuance from the 2002 summit so that the Israelis could be “reassured” and the peace process moved forward.”

“Yes, the initial American reaction to the initiative was tepid, with State Department spokesman Richard Boucher describing it as just “an important and positive step.” A few days later, in the same tone, Secretary of State Colin Powell described it as an “important step,” but he stressed the need for more details about it (as if they were not aware of it!)”

In special agreement with Dar El Shorouk - all rights reserved.



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.