Turkey-Russia Relations: Friend or Foe or Just Pragmatism

A Russian military vehicle in the countryside of Qamishli, northeastern Syria (File Photo/AFP)
A Russian military vehicle in the countryside of Qamishli, northeastern Syria (File Photo/AFP)
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Turkey-Russia Relations: Friend or Foe or Just Pragmatism

A Russian military vehicle in the countryside of Qamishli, northeastern Syria (File Photo/AFP)
A Russian military vehicle in the countryside of Qamishli, northeastern Syria (File Photo/AFP)

Turkish-Russian relations have historical depth, marked mostly by conflict. Ottoman Empire and Tsarist Russia fought a dozen wars. During the First World War, they were on opposite sides. The two enjoyed fair to good relations during the Turkish War of Independence but even then, things were not as good as they looked. After the Second World War, the Soviets claimed some Turkish territories in eastern Anatolia and questioned Turkish sovereignty over the Turkish Straits. Turkey joined NATO in 1952 serving as the Alliance’s southern flank nation throughout the Cold War. After the collapse of the Soviet Union, Turkey and Russia were in competition for what some like to call the new great game over the Caucasus and Central Asia.

In the 18th and 19th centuries, Crimean Tatars, Circassians, Nogais ( Turkish ethnic group who live in the North Caucasus region), and many others of a shrinking Ottoman Empire had to flee their ancestral homes due to Russian advances. These people who found their new homes in Anatolia have also been a factor in Turkey-Russia relations.

Against this background, within the framework of the new strategic environment and developments in the international arena, Turkish-Russian relations gained a new momentum in the 2000s.

Presidents Erdoğan and Putin are regarded by many, as look-alike in their way of doing politics in general. They may not be the best of friends, (friendship defined by common ideals, lifestyles and pleasures) but they have established a kind of working relationship, based on mutual interest and benefit. This relationship plays a major and even central role in the present-day conduct of Turkey-Russia relations.

Bilateral relations between the two countries are quite active.

Trade volume is at an average of 25 billion dollars. At one point it was around 30 billion dollars. Despite a decline in its share, Russia is still Turkey’s main energy supplier, providing 34 per cent of its natural gas and 11 per cent of its oil. On the other side, Turkey’s exports to Russia are mainly agricultural products, machinery, land vehicles and textiles. All in all, around 80 per cent of bilateral trade volume is in favor of Russia.

But Turkey makes up for this deficit in the fields of services and construction. Turkey continues to be the major destination for Russians who adore its moderately priced all-inclusive five star resorts. The record was in 2019 with seven million Russian visitors. As to construction sector, up-to date, Turkey has completed around 1980 projects in Russia with a total value of around 75 billion dollars.

Turkey also serves as the transit carrier of Russian natural gas. The most recent joint project in this area is the TurkStream which has been officially inaugurated in 2020. This project connects Russia and Turkey with two 930 kilometers long offshore pipelines running under the Blacksea, one of which brings natural gas to Turkey. The other one is for gas destined for Europe.

Akkuyu Nuclear Power Plant, with a total project cost estimated at 20 billion dollars, is another strategic value cooperation. Its first reactor is planned to be operational in 2023.

On the world stage, Russia and Turkey keep running into each other in different theaters, such as Syria, Ukraine, Libya, south Caucasus, They are mostly on opposing sides and occasionally, they physically hurt each other. But on the whole, the two countries have managed to establish some sort of a dialogue and cooperation module in all these theaters.

Russia is a major actor in Syria and militarily active in the field. Astana Process has paved the way for cooperation between Turkey and Russia. But the potential for a rift is still very much present, especially in Idlib. Despite a 2018 agreement, half of the province has been captured by the regime and Russia. In the opposition-held and frequently targeted by the regime part of Idlib, thousands of armed militants of Hayat Tahrir al-Sham and other mostly radical groups are present.

At a press conference in Moscow on September 9 with Israeli Foreign Minister Lapid, in response to a question Minister Lavrov said: “Turkish colleagues need to fulfill the agreements reached by Presidents of Russia and Turkey in September 2018. These agreements provide for the separation of the normal, reasonable opposition from the terrorists, primarily from Hayat Tahrir al-Sham. This work is underway but, unfortunately, it is far from complete”. In the context of recent developments in Deraa, Lavrov stated that “in Deraa and on a broader plane, in Syria, no territories should be controlled by armed units other than the Syrian army.” What Lavrov said can be taken as a message as to what can be expected in the future.

What happens in Idlib and with its 3.4 million inhabitants in case of an all-out military campaign by the Assad regime and Russians, carries a potential for confrontation. In that regard, the attack on a Turkish patrol in Idlib on Saturday, killing two Turkish soldiers and wounding three, came at a critical time.

The 24 November 2015 incident, when Turkey shot down a Russian SU-24 military aircraft in Syria, was a clear example of how things could turn very sour between the two countries. Russia halted almost everything from Turkish businesses on its territories, to Russians visiting Turkey. Turkish military activities in Syria were also seriously affected. Russia enforced its position in Syria with sophisticated military hardware including air defense systems. It took a lot of effort and almost a year to straighten out relations.

In Libya, Turkey and Russia have faced each other with various fighting elements. Turkish involvement on behalf of the Government of National Accord changed the course of the war. Russia and its side did not end up on top. But neither seems discontent with the turn of events, at least for now.

In 2020, Azerbaijan, supported by Turkey, was able to liberate its territories under Armenian occupation. Turkey carved its mark in the Caucasus demonstrating that it is a force that counts. Turkey also further solidified its alliance with Azerbaijan and won points with its kin in the Caucasus and Central Asia. On part of Russia, not-so-Russia-friendly Prime Minister Pashinyan learned a lesson. Russia managed to engineer a ceasefire and under the terms of the ceasefire agreement, was back on the Azeri soil for the first time since 1990. In any case, both Turkey and Russia played it well in preventing things from taking a different shape and turn into a conflict between themselves.

Turkey and Russia are also on opposite sides on Ukraine. Turkey’s openly declared position is that it does not recognize the annexation of Crimea. Russia does not seem to mind this, as long as political positions are not turned into some sort of action. But the Russians follow with dissatisfaction and some concern, recent defense cooperation between Turkey and Ukraine, in particular, transfer of Turkish killer drones.

Afghanistan may become another file either for cooperation or confrontation between the two countries, depending on how things develop over there. The reasons are not entirely clear for everyone, but Turkey seems keen to assume a role in new Afghanistan. Russia regards Afghanistan basically from a security point of view, with particular reference to Central Asian countries. This region is crucial for Russia in terms of its strategic value, near abroad concept and the Russian-led Collective Security Organization.

One other issue of particular importance and with a strong NATO angle is the Black Sea and the Montreux Convention. Russia does not want NATO vessels in the Black Sea and is adamant about preserving the Convention as it is, which regulates the passage of warships through the Turkish Straits and limits their presence. The Turkish President’s most favored and politically advertised Canal Istanbul Project has raised some questions as to whether the Convention will have to be altered or not. Turkey’s position does not seem to be in contradiction to Russia’s.

The most important development in bilateral relations with far-reaching implications has been Turkey’s acquisition of S-400 air defense systems from Russia. The US and some other NATO Allies reacted strongly. The US went so far as imposing CAATSA (Countering America’s Adversaries Through Sanctions Act) sanctions on Turkey. Many in the West continue to present the S-400 issue as yet another proof of Turkey drifting away from NATO and the West.

Turkey’s side of the story is quite different. For some time now, Turkey has felt very unfairly treated by the EU or the West in general. It felt left out in the cold by its Allies on a number of occasions. Turkey’s EU accession negotiations are in deep freeze. Arms sales from many Allied countries including the USA, Canada, France and Germany are either restricted or in some cases, banned altogether. Turkey has argued that it had attempted to purchase air defense systems from the US and other western nations but was turned down. Russia, on the other hand, was more than ready to sell and Turkey opted for where it was possible to purchase the much-needed system.

Turks of different political convictions which rarely agree on anything, are of the same opinion that Turkey’s moves are not out of love for Russia but a consequence of the negative treatment of its Western Allies and partners.

In any case, Russia is happy. It managed to sell one of its multi-billion dollars weapons system, created a rift within NATO and further troubled the already strained relations between Turkey and the West.

Turkey is a member of an Alliance which identifies Russia as the main threat in a deteriorating security environment. But there is nothing to prevent Turkey, or any other member country for that matter, to engage with Russia in various fields, based on mutual benefit and respect, without contradicting NATO commitments and obligations. In any case, it is equally true that Turkey which enjoys good relations with its western allies and partners will be much better positioned in its dealings with Russia, compared to Turkey which is left alone by its allies and partners.

In conclusion, Turkey and Russia may have diverging positions on a number of issues, some with a potential for direct or indirect confrontation. But, for now, their relations seem to be governed by pragmatism. Even though a lot of patience and some occasional looking the other way may be needed in these relations, both countries seem to realize that dialogue and cooperation are better than confrontation; so long as it is possible.



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.