Ten Challenges that Will Determine Syria’s Fate in 2023

30 December 2022, Syria, Idlib city: Syrians take part in a demonstration against potential rapprochement between Türkiye and the Syrian government, after the Russian, Syrian, and Turkish defense ministers met in Moscow on Wednesday for talks for the first time since the war broke out in Syria in 2011. (dpa)
30 December 2022, Syria, Idlib city: Syrians take part in a demonstration against potential rapprochement between Türkiye and the Syrian government, after the Russian, Syrian, and Turkish defense ministers met in Moscow on Wednesday for talks for the first time since the war broke out in Syria in 2011. (dpa)
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Ten Challenges that Will Determine Syria’s Fate in 2023

30 December 2022, Syria, Idlib city: Syrians take part in a demonstration against potential rapprochement between Türkiye and the Syrian government, after the Russian, Syrian, and Turkish defense ministers met in Moscow on Wednesday for talks for the first time since the war broke out in Syria in 2011. (dpa)
30 December 2022, Syria, Idlib city: Syrians take part in a demonstration against potential rapprochement between Türkiye and the Syrian government, after the Russian, Syrian, and Turkish defense ministers met in Moscow on Wednesday for talks for the first time since the war broke out in Syria in 2011. (dpa)

Ten developments and files, both local and foreign, will determine the fate of Syria in 2023. The resolution of these files will have implications for years and perhaps even decades to come. They will determine the fate of the three “statelets” in Syria after they remained largely unchanged in the past three years.

1 – Turkish normalization: The Syrian and Turkish foreign ministers are expected to hold a meeting in mid-January to follow up on the military and security talks that were held in recent weeks. The aim is to reach Russian-sponsored joint arrangements in northern Syria, starting from the US zone of influence east of the Euphrates River.

Here, one must monitor the roadmap drafted by Moscow for Damascus and Ankara that should culminate in a meeting between Turkish President Recep Tayyip Erdogan and Syrian President Bashar al-Assad before Turkish presidential and parliamentary elections are held in June.

There is no doubt that the results of the roadmap will have massive political and economic repercussions on Syria and its surrounding. Will deals be struck? Will concessions over geography be made in exchange for political and economic gain?

2 – Kurdish concerns: One of the main common points of agreement between Moscow, Ankara and Damascus is weakening the Kurdish entity and their autonomous administration in northeastern Syria. They believe that these Kurdish institutions are an “existential threat to Syria and Türkiye.”

Joint Syrian-Turkish military operations and Russian pressure are being exerted to dismantle these Kurdish institutions and keep them at a 30-kilometer distance from the Turkish border.

One must monitor the positions of the Kurdish Syrian Democratic Forces (SDF) and Syrian Democratic Council (SDC) over these developments. The SDF has said that it has withdrawn its heavy weapons and Kurdish People Protection Units (YPG) from the border region in line with the 2019 Sochi agreement reached between Russia and Türkiye. It has, however, refused to pull out its Asayish security forces and local councils.

The SDF is banking on Erdogan’s loss in the elections and continued American support and military presence. Ankara is insisting on the dismantling of all Kurdish institutions and is not opposed to the deployment of Syrian border guards, forces and institutions on its border.

3 – US cover: The SDF has been allied with the US-led international anti-ISIS coalition for seven years. They succeeded in defeating the group geographically in Syria. The US, meanwhile, set up military bases in Syria that have given it clout in negotiations against Russia, in curbing Iran’s entrenchment in the war-torn country and in offering logistic support to Israel.

Contrary to the former administration of US President Donald Trump that had made a surprise call for the pullout of American troops in Syria, current President Joe Biden has maintained the troop presence. There are signs that the US, which is involved in the war on Ukraine, needs Türkiye and NATO and will not wage a war against Ankara because of the Kurds.

The American position must be monitored in wake of efforts to normalize relations between Türkiye and Syria.

Arab fold

4 - Arab normalization: The bilateral steps of normalization that had taken place between Arab capitals and Damascus, and the collective steps between the Arab League and Damascus, were somewhat put on hold in 2022. Syria did not attend the Arab summit in Algeria due to objections by influential Arab countries.

Some countries, such as Jordan, the United Arab Emirates and others, that had kicked off normalization also put these efforts on hold last year for various reasons, such as the bitter experience with Damascus in controlling its border and halting the smuggling of Captagon narcotic pills. They also yielded to American and western pressure to freeze the normalization. The US Congress had issued new resolutions against Damascus, limiting economic support towards it.

The Arab position must be monitored in 2023 in the leadup to the next Arab summit set for spring and in wake of the changes taking place in relations between Arab countries, the US, China and Russia. The position will likely be impacted by the normalization between Ankara and Damascus and Damascus’ behavior in regional files and its ties with Iran.

5 – Ukraine war: Russia’s involvement in the war has had a major impact on Syria. The conflict bolstered the cooperation between Ankara and Moscow and Presidents Erdogan and Vladimir Putin. Putin now needs Erdogan, whose country is now Russia’s economic and political gateway.

The Russian leader has also been pushing for a meeting between Erdogan and Assad so that they could resolve their differences and open a new chapter in relations. He has also been keen on Erdogan winning the upcoming presidential elections.

On the economic level, the Syrian conflict has largely been forgotten with the world focused on Ukraine. Donor funds are now being pumped in Ukraine instead of Syria, deepening its economic crisis.

6 – Israeli strikes: Israeli Prime Minister Benjamin Netanyahu’s hard-right government kicked off the new year by carrying out strikes against “Iranian targets” in Damascus International Airport, leaving the facility out of service for several hours.

Israel has carried out hundreds of similar raids against Iranian positions in Syria over the years. Last year, it expanded the scope of its attacks throughout the country. The Syrian Observatory for Human Rights documented 32 Israeli raids in 2022 that destroyed and struck 91 targets, including buildings, weapons caches and vehicles. Eighty-eight military personnel were killed and 121 wounded in the attacks.

One must monitor the impact of Netanyahu’s return to power on Syria in 2023. How will his hardline government tackle the Iranian nuclear file? What will happen to understandings reached between Israel and Putin and the hotline for military coordination between Tel Aviv and Russia’s Hmeimim base in Syria? How will Israel’s position on the war on Ukraine and the military cooperation there between Moscow and Tehran impact its stance on Syria?

Syrian-Iranian ‘divorce’

7 – Iranian alliance: Tehran believes that it helped “save” the Damascus regime when it intervened in the Syrian war in late 2012. It offered massive military, security, economic and financial support to Syria and wants a price for it. It has been stalling in “saving” the regime from its economic crises without extracting a price: “sovereign concessions” that include the establishment of permanent military bases in Syria and securing economic agreements related to oil, gas and phosphates.

Tehran is taking advantage of the economic crisis in Damascus, Moscow’s preoccupation in Ukraine, the possible normalization of relations between Türkiye and the Arabs with Syria, and the Israeli raids to reap major privileges in Syria.

One must observe the developments between Damascus and Tehran, most notably since Iranian President Ebrahim Raisi was set to visit Syria last week and amid claims of a Syrian-Iranian “divorce” or a “redefinition” of the relationship.

8 – Economic crisis: Syria has been destroyed by 12 years of war. The United Nations says half the Syrian population have been displaced from their homes and a third of them have sought refuge abroad. Ninety percent of the population is living in poverty, 80 percent suffers from lack of food security and 14.6 million people rely on aid. The cost of the food basket rose 85 percent in 2022 and the Syrian pound has lost over 80 percent of its value.

The catastrophe is massive. One must monitor the developments related to the extension of the international resolution on the delivery of cross-border humanitarian aid later in January. One must note Russia’s position on the resolution that is the lifeline for nearly four million people in northern Syria. The extension of the resolution would ease a financial burden on Damascus.

9 – Syrian collapse: Syrians living in government-held regions have said the situation there was worse in 2022 than what it was in 2011, the start of the conflict. They noted how the government has sought to shed economic costs by extending holidays and occasionally suspending work at institutions and hospitals.

There are deep concerns over a major collapse in Syria that will impact the government, army and security forces. The normalization of relations between Türkiye and Syria will have an impact on the economic crisis. Will the crisis force Damascus to take painful political decisions and implement UN Security Council resolution 2254 or will it lead it to loosen its relations with Iran?

10 - “Step for step”: UN envoy to Syria Geir Pedersen had focused his efforts in recent years on holding meetings of the Constitutional Committee, believing it to be the foundation for the implementation of resolution 2254. Russia, Türkiye and Iran had banked on this path through the Astana process.

In wake of the Ukraine war, Russia has made logistic conditions related to the Constitutional Committee that has led to the suspension of its work for months.

Pedersen therefore, revived an old suggestion – the “step for step” approach – that calls for Damascus to carry out measures in return for western countries to offer incentives and waivers. Syria had never showed interest in this approach, but this stance has now shifted. This was evident during the latest meeting held between Pedersen and Syrian Foreign Minister Faisal al-Mikdad in Damascus, which wants to know what is on offer and what countries are offering them.

Discussions are ongoing over simple issues, such as western countries taking steps to resolve the electricity problem or granting visas to Syrian diplomats, in return for Damascus taking steps towards prisoners and amnesty.

This path must be monitored, as well as the next meeting between Pedersen and Mikdad and the extent it may impact the normalization between Ankara and Damascus and just how committed it is to the envoy’s mission.



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.