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October 7, 2024

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Those interested in the lithium sector and investing in lithium stocks are often curious about which countries produce the most of the battery metal, but they may not stop to consider the top lithium reserves by country.

Major lithium-producing countries are, of course, home to a large number of lithium companies. Many of the world’s top lithium producers also hold significant reserves, and their reserves can give an idea of how much room those countries have to grow. At the same time, nations with high reserves may become more significant lithium players in the future.

Looking forward, lithium demand is expected to continue increasing. That’s because, together with metals such as cobalt, lithium is a key raw material in the lithium-ion batteries used to power electric vehicles; it is also essential for the energy storage sector. However, lithium supply to meet that increasing demand is still uncertain.

On that note, here’s an overview of lithium reserves by country, with a focus on the four countries that hold the most lithium. Data is based on the most recent information from the US Geological Survey.

1. Chile

Lithium reserves: 9,300,000 MT

Chile was the second biggest producer of lithium in 2032 at 44,000 metric tons (MT), but it has the most reserves in the world by a large amount. The country reportedly holds most of the world’s “economically extractable” lithium reserves, and its Salar de Atacama hosts approximately 33 percent of the world’s lithium reserve base. SQM (NYSE:SQM) and Albemarle (NYSE:ALB) are the key lithium producers in Chile, with operations in the Salar de Atacama.

In late April 2023, Chilean President Gabriel Boric announced plans to partially nationalize the country’s lithium industry in a bid to bolster the economy and protect the environment. “This is the best chance we have at transitioning to a sustainable and developed economy,” he said at the time.

Chile’s state-owned mining company Codelco has negotiated for much larger stakes in both SQM and Albemarle’s lithium assets in the country, and will have controlling interests in all operations in that salar going forward.

2. Australia

Lithium reserves: 4,800,000 MT

Interestingly, while Australia was the largest lithium-producing country in the world in 2023, it’s a distant second in terms of reserves of the important commodity. Unlike those found in Chile and Argentina, Australia’s lithium reserves are in the form of hard-rock spodumene deposits. The majority of the country’s reserves are found in Western Australia.

The country is home to the Greenbushes lithium mine, which is operated by Talison Lithium, a subsidiary jointly owned by lithium producers Tianqi Lithium (OTC Pink:TQLCF,SZSE:002466) and Albemarle, as well as Australian nickel-gold miner IGO (ASX:IGO,OTC Pink:IPGDF). Greenbushes has been producing lithium since 1985, and it has been the subject of multiple expansions in recent years.

3. Argentina

Lithium reserves: 3,600,000 MT

Argentina is the fourth largest lithium producer in the world, and last year it put out 9,600 MT of the metal. It ranks third in terms of global lithium reserves at 3,600,000 MT. It’s worth noting that Chile, Argentina and Bolivia comprise the “Lithium Triangle,” which hosts more than half of the world’s lithium reserves.

In May 2022, the Argentine government committed to investing up to US$4.2 billion in its lithium industry over the next three years with the goal of increasing lithium output. More recently, in April 2024, the government greenlit Argosy Minerals’ (ASX:AGY,OTC Pink:ARYMF) expansion of its Salta site to raise annual lithium production from 2,000 MT to 12,000 MT.

4. China

Lithium reserves: 3,000,000 MT

China holds lithium reserves of 3,000,000 MT, and last year it produced 33,000 MT of the mineral, a 7,400 MT increase from the previous year. The country has a mix of deposit types; lithium brines make up the majority of its reserves, but it has spodumene and lepidolite hard-rock reserves as well.

While it does have significant production and is working to increase it, the Asian nation currently still imports most of the lithium it needs for its battery cells from Australia.

China’s lithium usage is high due to its electronics manufacturing and electric vehicle industries. It also produces more than two-thirds of the world’s lithium-ion batteries and controls most of the world’s lithium-processing facilities.

Other lithium reserves by country

Total worldwide lithium reserves stand at 28,000,000 MT. While Chile, Australia, Argentina and China are home to the world’s highest lithium reserves, other countries also hold significant amounts of the metal.

Here’s a quick look at these other nations:

United States — 1,100,000 MTCanada — 930,000 MTBrazil — 390,000 MTZimbabwe — 310,000 MTPortugal — 60,000 MT

As the lithium industry continues to grow, production has followed, and many of these countries with high reserves are becoming significant producers as well.

FAQs for lithium reserves

Where in the world are the best lithium reserves?

Chile has the largest lithium reserves, and the three countries that make up the Lithium Triangle — Argentina, Bolivia and Chile — together account for more than 63 percent of the world’s lithium reserves.

How should India use its newly found lithium reserves?

In 2021, India’s first lithium deposit was found in the Mandya district of Karnataka. More recently, a much larger amount of lithium has been uncovered in India. In early 2023, the Geological Survey of India reported the discovery of 5.9 million MT of the material in the Salal-Haimana area of the Reasi district in Jammu and Kashmir.

The Indian government hopes to develop its newly found lithium reserves in order to reduce its lithium imports and build out its domestic zero-emissions technology industry. The first step involve changes to mining laws that will allow private firms to mine lithium in India. ‘To leverage the deposits, the government has eased the mining process by allowing the auction of lithium mines,’ reported the East Asia Forum.

What are the biggest lithium reserves in Europe?

Portugal has the biggest lithium reserves in Europe, coming in at 60,000 MT. The Southern European country produced 380 MT of lithium in 2023, the same as the previous year.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Lightning Minerals (L1M or the Company) is pleased to announce the start of a targeted infill soil sampling program at its Dundas lithium project in Western Australia. The program is designed to infill the existing geochemistry program which was completed on a grid spacing of 400m x 400m and will consist of approximately 500 samples.

A number of areas of interest were identified in the previously completed regional soil sampling program, particularly on Dundas North tenements E28/3027 and E28/3028 where broad lithium in soil anomalism was identified across an area of 35km2 and up to 147ppm Li1.

HIGHLIGHTS

Infill soil sampling program of ~500 samples to further test previously identified lithium in soil anomalism of up to 147ppm Li1Dundas North tenements to be tested across three large lithium targets up to 35km2, as identified in March 2023. Sampling to be completed down to granularity of 200m x 100m in some areasOn-ground works at the Company’s Brazil lithium projects in Lithium Valley is in progress with results expected imminently

Lightning Minerals Managing Director Alex Biggs said, “It’s good to be getting back to our works at Dundas following a period of review. We are focusing on areas of interest that have been previously identified as containing lithium in soil anomalism. Our work program is focused and targeted and will allow us to identify appropriate drill targets for a future exploration program. The infill soil sampling on our Dundas North tenements is of particular interest as it allows for us to develop higher confidence drill targets across the project areas. As much as our focus is on Brazil and our accelerated exploration on those projects it is important that we further our efforts at Dundas also particularly as we have gained significant knowledge of the region since our works began there in 2022. The Company now possesses lithium exploration potential in three of the strongest jurisdictions globally for the commodity which sets us up well for success as we move forwards.”

Dundas North Infill Soil Sampling

Phase 1 soil sampling was completed during Q1 and Q2 of CY2023 with samples collected on a nominal 400m x 400m grid across the tenements, with analysis completed by LabWest Minerals Analysis (LabWest). Analysis utilised the Ultrafine + (UFF+) method with chemical analysis for a suite of 62 elements including lithium and associated pathfinders typically used for identification of lithium-caesium-tantalum (LCT) mineralisation.

The tenor of background lithium level within the project area and the Mt Belches lithological unit appears to be approximately 40-60ppm lithium. The elevated zones returning multiple samples with values above 80ppm lithium and up to a peak result of 147ppm lithium. Results are thought to provide sound vectors toward potential mineralisation as the elevations are clustered and are proximal to suitable granitic protoliths within the ‘goldilocks zone’ for LCT pegmatite mineralisation. The ‘goldilocks zone’ is typically estimated to be between 2km and 10km from the source granitic body.

This geological setting therefore requires follow up exploration works to ascertain the source of the anomalies and forms the basis of the infill soil sampling program as shown in Figure 1. Infill sampling will be completed down to a granularity of 200m x 100m.

Dundas South Infill Soil Sampling

Soil sampling will also be undertaken at the Dundas South project area following up zones of interest identified by the regional soil program. Grids of differing resolutions will be completed across tenements E63/2028, E63,1932, E15/1748 and E63/1993 down to a minimum of 200m x 200m. Targeting criteria in these areas focus mainly on existing results for lithium and its pathfinder elements identified during the reginal program (as reported in ASX Announcement 23 March 2023), but also aim to assess gold/nickel potential as the genetic models can share attributes regarding lithologies, geochemistry and rheology. The planned sites are shown on Figure 2 below, modifications may be undertaken in the field as guided by the supervising geologist.

Click here for the full ASX Release

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Dreadnought Resources Limited (“Dreadnought”) is pleased to announce results from a diamond drilling program and down hole EM (“DHEM”) surveys at Tarraji-Yampi, located in the Kimberley Region of Western Australia.

HIGHLIGHTS

Assays from a diamond drilling program (6 holes, 1,524.8m) at Tarraji-Yampi have been received. These holes were designed to test 6 Cu-Au volcanogenic massive sulphide (“VMS”) targets around the Orion deposit and to identify potential off-hole conductors.
Significant results were returned from the Orion, Orion Repeat, Orion Offset and OR1 targets:

Orion and Orion Repeat: KMDD001: 3m @ 4.5% Cu, 2.2g/t Au, 46.0 g/t Ag, 0.15% Co from 58.3m

And: 16m @ 0.7% Zn, 0.7% Pb, 12.7g/t Ag, 0.1g/t Au from 162m
Including:2m @ 2.6% Zn, 1.1% Pb, 26.8g/t Ag, 0.1g/t Au from 173m

Orion Offset: KMDD004: 5m @ 0.4% Cu, 0.5 g/t Ag from 11m

And: 1m @ 1.3% Zn, 0.7% Pb, 32.2g/t Ag, 0.1g/t Au from 23m

And a 50,000S conductor spanning ~150m x 150m, located ~100m down dip

And: 2m @ 0.9% Zn, 0.2% Pb, 3.8g/t Ag from 106m

And a 15,000S conductor spanning ~90m x 140m located ~80m down dip

OR1: KMDD006: 6m @ 1.2% Cu, 0.08% Co from 27m

Including: 2m @ 2.0% Cu, 0.19% Co from 28m

And a 24,300S conductor spanning ~80m x 200m, located ~180m down dip

Additionally, a strong 14,500S off hole conductor spanning ~335m x 350m was defined at OR2.Results from the regional IP survey are expected in October 2024.

Dreadnought’s Managing Director, Dean Tuck, commented: “This drilling program was designed to identify new zones of mineralisation within and around the same feeder structures as Orion to better understand the Cu-Au VMS system. This program has delivered 6 new zones of mineralisation and four off-hole conductors that warrant follow up drilling. This is a successful outcome for the program and validation of the VMS model of mineralisation. As part of this program, an EIS co-funded IP survey was undertaken to test the effectiveness of IP at identifying Grant’s Find style Epithermal / Mesothermal Cu-Au mineralisation. The significant intersection of this style of mineralisation at OR1 underscores the importance of this work and we expect the results of that survey in October 2024.”

Technical Discussion of Diamond Drilling

In the Phase 1 drill program (6 holes, 1,640m), 5 of the 6 targets were located along the same interpreted feeder structure as the Orion deposit and were defined by highly conductive, magnetic anomalies associated with elevated pathfinder geochemistry. These targets include the depth extension of Orion. The 6-hole Phase 1 drill program targets are discussed and summarised below.

Click here for the full ASX Release

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It’s been a year since the deadly fighting between Israel and Hamas began, and the dire humanitarian crisis is getting worse. In addition to ongoing bloodshed in Gaza, the fighting between Israel and Hezbollah has intensified across swaths of Lebanon.

Israel’s ambassador to the UN said 70,000 Israeli civilians have evacuated the northern part of their country after an onslaught of Hezbollah rockets and drones. The UN reported that 90,000 Lebanese civilians have fled their homes to avoid Israeli airstrikes.

Meanwhile, hospitals in Gaza continue to struggle with overwhelming casualties and a lack of resources amid Israel’s ongoing operations there. Gaza’s Ministry of Health reported more than 40,000 Palestinians have been killed since the fighting began in the aftermath of the Hamas incursion into Israel one year ago. At least 1,200 people were killed in that attack. 250 were taken hostage.

Impact Your World has gathered a list of vetted organizations that are on the ground responding. You can support their work by clicking HERE or using the form below.

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New Zealand’s navy lost its first ship since World War II after the HMNZS Manawanui sank on a reef off the coast of Samoa on Sunday creating a potential environmental disaster in waters used for fishing and tourism.

The specialist dive and hydrographic vessel lost power and ran aground on Saturday evening while conducting a reef survey one nautical mile off the southern coast of the Samoan island of Upolo, according to New Zealand authorities.

By Sunday morning, the vessel was “listing heavily,” the navy said. Smoke was spotted around 6:40 a.m., and by 9 a.m. the ship had slipped below the surface.

It’s the first unintentional sinking of a New Zealand naval vessel since the Second World War, authorities said, as they opened a court of inquiry into what happened.

Local businesses and conservationists now fear the potential environmental impact of the accident, which occurred in waters off Samoa’s most populated island.

New Zealand Defense Minister Judith Collins told Newstalk ZB that authorities’ first priority was assessing the depth of the vessel and the risk of a spill.

“It’s got a lot of oil on board. …. It’s got lubricating oil, hydro oil, diesel, urea. It’s got a lot of stuff in it. And I don’t think we can just sort of leave it like that,” she said.

Divers were sent to the scene on Sunday night, she said. “They’ll be having a look to see what they can, but it’s going to be quite a big job,” she added.

Acting Samoan Prime Minister Tuala Tevaga Iosefo Ponifasio said in a press statement Sunday that an oil spill was highly probable.

“The HMNZS Manawanui is not recoverable and has sunk into the ocean,” he said.

A reef emergency

Samoan police received a distress call just before 7 p.m. on Saturday night, according to local authorities. Small boats were dispatched with the warning that the ship was taking on water and its crew would likely need evacuating.

Numerous vessels and aircraft were sent to help, including a Royal New Zealand Air Force P-8A Poseidon and C-130J aircraft, the New Zealand navy said.

By 5 a.m. Sunday, all 75 passengers and crew had been rescued, but witnesses said they soon saw smoke rising from the sinking wreck.

“It took 15 minutes for the boat to be fully ablaze and then sink,” he said, adding that local villagers left a Sunday church service to watch the ship.

“They were visibly upset and concerned for their beach, reef, marine reserve and income as fishermen,” Poole said.

New Zealand Prime Minister Chris Luxon said that “environmental spill kits” had been sent from New Zealand to help mitigate and minimize the effects.

The HMNZS Manawanui was a relatively new addition to the New Zealand navy, having been purchased in 2018 for around $100 million NZD ($61 million), though it was built in the early 2000s.

According to the navy, the ship was designed to “survey harbours and approaches prior to larger support ships landing support equipment and personnel whether for combat or disaster relief.”

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Africa is home to the world’s largest free trade agreement, in terms of number of countries, territory, and population – the African Continental Free Trade Area (AfCFTA). Fifty-four of 55 African Union member countries have signed up to the deal which covers a market of 1.3 billion people and a combined GDP of $3.4 trillion.

It aims to boost economic growth, intra-African trade and investment across the continent, but although it was established in February 2020, implementing the agreement has been slow.

According to the Economic Commision for Africa, African countries continue to trade with the rest of the world more than among themselves. Inadequate infrastructure, a lack of finance, and weak governance are often to blame.

The following interview has been edited for clarity and length.

Eleni Giokos: When you took on the job as Secretary General, did you think it was going to be this intense to create so many different standards across the continent, and what was the most challenging aspect of putting this all together?

Wamkele Mene: I don’t think anybody would’ve imagined how challenging and enormous the task is. One of the reasons it’s challenging and will continue to be challenging for a long time is because we are a very, very fragmented market. We have 47 state parties to the agreement establishing the AfCFTA. Hopefully the remaining few countries will ratify soon. Within those 47, we have 42 currencies. We have countries that have a GDP per capita of $110, and then at the (other) end of that spectrum, a GDP per capita of $25,000. We have the least developed countries, we have landlocked countries, we have countries that are at variance from a macroeconomic policy standpoint. So, when you try to integrate and create a single market, economic integration is incredibly difficult.

EG: How has AfCFTA evolved since it came to inception, since it’s been launched on the continent?

WM: We were established in the middle of Covid-19 in February 2020. The following month, March 2020, is when the entire continent of Africa shut down – closure of borders, closure of airports, everything that is an instrument for trade was shut down. For the first six to nine months of the year, it was extremely difficult to get anything done.

Now, we have concluded all the protocols of the agreement – in other words, the legal construct – including very difficult areas such as digital trade; rules of origin of local content for textiles and clothing, for the automotive sector; creating a dispute settlement mechanism for an entire continent of 47 countries trading under the AfCFTA. All these rules are the nuts and bolts of trade, and I am very happy that we are now in transition from negotiating the rules to implementing the rules.

EG: In 2022, seven countries chose to pilot the African Continental Free Trade Area. How is that going, how is that being adopted, are you seeing the actual implementation?

WM: In 2022, seven countries were ready. By readiness, we mean they introduced the customs systems, they gazetted the AfCFTA into their national law. This October (there) will be 37, which means that 37 countries are at a state of readiness and are trading under the rules and the preferences.

EG: A lot of people in the private sector say they don’t really feel the impact of the African Continental Free Trade Area. They don’t, frankly, think it’s working. What do you say to that?

WM: We are integrating a market of 47 countries. The private sector is, as I always say, a co-pillar and a co-driver of market integration on the continent because it’s the private sector that trades. What I would say to them is this: we are overcoming 60 years of market fragmentation. It’s not going to happen overnight. And we know this from the experience of the European Union, which is arguably the most successful market integration model in the world today. It is (31) years since the establishment of the European Union, and yet it still continues to have challenges.

EG: Here’s one of the most controversial issues. Aliko Dangote has been talking about the fact that he needs 35 visas to travel across the African continent. If the richest man in Africa can’t get around easily, who can? How does this hinder people doing business cross-border?

WM: It’s a significant barrier and constraint to intra-Africa trade and intra-Africa investment. There are only four countries that to date have ratified the African Union’s protocol on movement of persons – only four countries. There is an emotional instinct against allowing movement of persons in some countries. In some countries there are legitimate national security concerns. So, we have to work hard to make sure that we convince countries about the importance of moving in the same direction on free movement of persons whilst at the same time addressing the national security concerns that those individual countries have.

EG: Can we even be having this conversation on integration if we don’t actually focus on infrastructure that links the continent up? 

WM: More needs to be done to enable the continent of Africa to have the infrastructure that we need so that these goods can transit through borders seamlessly, efficiently, based on the rules that we have agreed to. So, we look forward to the operationalization of the Lobito corridor (a railway project that links link Angola, Zambia, and the Democratic Republic of Congo). All of these trade corridors that are embedded on world-class infrastructure will enable our continent to take drastic steps in boosting intra-Africa trade.

It’s not just about the trade rules, it’s about establishing the supply chain networks, the transport and logistics infrastructure that will support trade.

EG: It’s five years from now: What kind of conversation do you hope to be having with me about where we are?

WM: I think that what I’ve learned over the last four years in this position is that you have to be extremely patient. If in five years time we can demonstrate that we have moved intra-Africa trade from let’s say 15% to 25% or 30%, that will be a very important step forward.

I think we can double intra-Africa trade in the next five years, provided we introduce the tools that are required. So in other words, payment, ensuring that there is ease of access to intra-Africa payments; ensuring at the very minimum (there is) trade supporting infrastructure, particularly in the trade corridors (between) Central Africa, Eastern Africa, Northern Africa; and then third, we combine all of that with the political will and the rules that have been negotiated to create the single market. I believe that we’re going to get there.

In 2018, many (people) around the world, including on the continent of Africa, were saying that these Africans will negotiate forever and that the AfCFTA shall never be signed. And then of course, the AfCFTA was signed in Rwanda in 2018. Then they said it’ll never be ratified, and a year later the agreement was ratified – now 47 countries have ratified it. Now they’re saying that it shall not be implemented. In October, 37 countries will demonstrate implementation when they showcase the goods and the certificates of origin that they are trading in. At every milestone, there’s a new goal post for us to meet.

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It is “absolutely impossible” for Communist China to become Taiwan’s motherland because the island’s government is older, Taiwan’s president has said in a carefully timed speech that underscores the intense historical rivalry between the two.

Lai Ching-te, who took office in May, has long faced Beijing’s wrath for championing Taiwan’s sovereignty and rejecting the Chinese Communist Party (CCP)’s claims over the island.

Despite having never controlled Taiwan, China’s ruling Communist Party has vowed to “reunify” with the self-governing democracy, by force if necessary. But many people on the island view themselves as distinctly Taiwanese and have no desire to be part of the People’s Republic of China.

On Saturday, in a move likely to further infuriate Beijing, Lai dug into history to make his point, stressing that Taiwan is already a “sovereign and independent country” called the Republic of China (ROC), whose government ruled mainland China for decades before relocating to Taiwan when the CCP came to power.

The ROC was founded in 1912 after a Nationalist revolution overthrew China’s last imperial dynasty, the Qing. At the time, Taiwan was a Japanese colony, ceded by the Qing dynasty after it lost a war to Imperial Japan nearly two decades earlier.

The ROC later took control of Taiwan in 1945, following Japan’s defeat in World War II. Four years later, its Nationalist government then fled to the island after losing a civil war against Mao Zedong’s Communist forces, moving the seat of the ROC from the mainland to Taipei.

In Beijing, the CCP took power and founded the People’s Republic of China (PRC) on October 1, 1949. Since then, the two sides have been ruled by separate governments.

Successive Chinese leaders have vowed to one day take control of Taiwan. But Xi Jinping, China’s most assertive leader in decades, has ramped up rhetoric and aggression against the democratic island – fueling tension across the strait and raising concerns for a military confrontation.

Speaking at a concert ahead of Taiwan’s national day on October 10, Lai noted the two governments’ different political roots, delivering a lesson in comparative history.

“Recently, our neighbor, the People’s Republic of China, just celebrated its 75th birthday on October 1. In a few days, the Republic of China will celebrate its 113th birthday,” Lai said, receiving to a round of applause from crowds in a stadium in Taipei.

“Therefore, in terms of age, it is absolutely impossible for the People’s Republic of China to become the motherland of the people of the Republic of China. On the contrary, the Republic of China may actually be the motherland of citizens of the People’s Republic of China who are over 75 years old.”

Monday is the last day of China’s week-long national day holiday and the Chinese government has not responded to Lai’s remarks.

But his comments have already drawn criticism from politicians in Taiwan’s largest opposition party, the Kuomintang (KMT), which has long accused Lai’s ruling Democratic Progressive Party of needlessly stoking tensions with China.

“President Lai has deliberately mentioned ‘People’s Republic of China’ and his ‘motherland theory’ to incite political confrontation on both sides of the Taiwan Strait,” Ling Tao, a city councillor from the KMT, wrote in a post on Facebook.

The KMT are the political successors of the Nationalists who fled to Taiwan, ruled the island under martial law for decades and long harbored ambitions to one day restore the Republic of China on the mainland. They later joined Taiwan’s evolution into a democracy and have made significant ideological transformations, including favoring closer ties with Communist China.

Leaders in both Taipei and Beijing have long used their national day addresses to send a message across the Taiwan Strait.

Last week, on the eve of the PRC’s 75th birthday, Xi reiterated his pledge to achieve “reunification” with Taiwan.

“It’s an irreversible trend, a cause of righteousness and the common aspiration of the people. No one can stop the march of history,” Xi told a state banquet at the Great Hall of the People in Beijing, according to state-run news agency Xinhua.

“Taiwan is China’s sacred territory. Blood is thicker than water, and people on both sides of the strait are connected by blood,” he said, vowing to resolutely oppose “Taiwan independence” separatist activities.

Beijing has labeled Lai a “dangerous separatist,” and tensions have ratcheted up over the last five months since Lai’s inauguration in May, during which he called on China to cease its intimidation of Taiwan.

Lai is expected to give his first national day address as Taiwan’s president on Thursday.

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It is almost impossible to remember life in Israel before Hamas launched its brutal October 7 attacks a year ago, killing more than 1,200 people and kidnapping more than 250 others. There is little point, because that life is gone for good. And not just because more than 100 hostages are still captive.

The same is true beyond Israel’s borders.

Israel, its enemies and allies are all harbingers and painful witnesses to a remaking of the region’s diplomatic and political architecture on a scale that could rival the upheavals of the Arab-Israeli conflict a half-century ago.

The post-October 7 changes are both inevitable and, in their current chaotic form at least, preventable. The civilian cost is mounting when diplomacy might have saved lives.

A year ago it seemed the political architecture of the region was on the cusp of significant change. Propelled by US incentives, Saudi Arabia and Israel seemed closer than ever to a historic normalization of relations. Diplomacy and the deft skills needed to stitch such a complex deal together were in the ascendency.

But the prospect of approaching peace and prosperity evaporated as Hamas surged through the Gaza border fences at sunrise that Saturday morning. Butchery was afoot.

Irrespective of whether Hamas leader Yahya Sinwar was calculating he could torpedo normalization and push the Palestinian cause ahead of regional priorities for peace and economic integration, in the short term he succeeded.

I can remember, with gut-churning clarity, the smell of rotting human flesh as we entered Kfar Aza, about 800 yards from the Gaza Strip. It was October 10, and Major General Itai Veruv of the Israel Defense Forces (IDF) was leading the first international press access to see the devastation of Hamas’ attacks.

He stood at the gates, quoting General Eisenhower when he reached the Nazi death camps in World War Two: “The first thing he said was bring the press here to see.”

Over the past year Israel has struggled to keep the world focused on those nation-changing events of that bloody weekend.

For the first time, many Israelis realized their state was no longer the safe haven for Jews they had always believed it to be. The idea that whatever prejudice and persecution they may face around the world, in Israel they had sanctuary, was destroyed.

What emerged that first week as a scramble to seal the Gaza border and chase down remaining Hamas cells inside Israel soon manifested as a red mist of revenge and retribution against the attackers, and anyone near them.

Israelis’ feelings of vulnerability haven’t gone, while national rage has been refined into a steely logic of regional deterrence, manifested by Israel’s right-wing Prime Minister Benjamin Netanyahu.

He has interwoven his own political survival, in part to escape accusations he failed to stop Hamas’ attacks, with bombastic new tactics shredding the old rule book and its red lines that previously prevented regional escalation.

It is being called “escalation for de-escalation,” but as October 7, 2024, arrives, de-escalation, and any form of day after plan from Netanyahu, are absent.

The Jewish state’s relations with US President Joe Biden’s White House, its most important ally, are at their lowest ebb in a generation. Nearly 42,000 Palestinians in Gaza have been killed, many by US bombs and bullets in Israel’s hands, authorities in Gaza say. IDF killings and arrests of Palestinians, some of them US citizens, in the occupied West Bank are unsustainable for many of Israel’s European allies whom after a year of waiting are beginning to curb arms supplies.

But the pressures on Israel to rein in its survival instincts at a time when it is riven with deep political, religious, and maybe existential divisions are having little obvious traction.

Israel’s wiliest nearby adversary and Iranian mega-proxy Hezbollah – a blight on Lebanese post-civil war democracy – which began escalating cross-border rocket attacks the day after October 7, has undergone a lightening defenestration over the past few weeks. Its leader Hassan Nasrallah and many of his top commanders have been assassinated in Israeli air strikes, its forces partially crippled, ahead of Israel’s launch of its third ground war in Lebanon in the past half-century.

Hamas’ October 7 attacks, if not coordinated in detail with Iran, certainly had its blessing. The theocracy has been the Palestinian terror group’s biggest backer for decades, funneling money, military material and know-how. Iran vows to destroy Israel and chase its biggest ally the United States out of the region.

It uses pro-Palestinian messaging to enflame passions on the ‘Arab street’ in the region, most of whom are Sunni like the Palestinians, and most of whose leaders consider Iran, a Shia theocracy, at best untrustworthy, at worst an adversary. In this way Iran holds off regional rivals.

The past year has revealed the extent of its plans and co-opting of Shia communities to build up pro-Iranian militias. Yemen’s minority Houthis are no longer only anti-Saudi stooges for the Shia clerics in Tehran, but have turned their Iranian-supplied ballistic missiles and drones on Tel Aviv.

Iran has also, aided and fronted by the Houthis, begun blocking Red Sea commercial shipping – more than a thousand miles from Israel – on the pretext of supporting the Gazans.

Tehran’s Shia proxies in Iraq have also answered its calls and begun escalating drone attacks on Israel.

It is a multi-fronted war, escalating faster than would have ever seemed possible a year ago.

Back then rocket sirens in central Israel were not part of daily life. Today parents inside their home shelters in Tel Aviv scan cell phones for messages from their children, serving on the front lines as they too once did.

Each generation here is trained to fight in the defense of the nation; where the country divide is over how long to keep that fight going before switching to diplomacy. The reality is, the longer the escalation goes on, the less control the country and its prime minister will have over the outcome.

Potential regional partners like Saudi Arabia are now demanding a steeper and steeper diplomatic off-ramp for Netanyahu.

The normalization between Israel and the most powerful Gulf state that seemed so close before October 7, is for now out of reach, Netanyahu unwilling and too toxic to be a partner in the deal.

It was a deal that would have given Biden a legacy to be proud of; for Saudi’s Crown Prince Mohammed Bin Salman, MBS, the legitimacy and security he craves; and Netanyahu, an inoculation against a millennia of animus.

Saudi Arabia’s price now is an “irreversible path” to a Palestinian state, which is an anathema to Netanyahu, his extreme nationalist right-wing cabinet, and in the wake of October 7, even further beyond the pale for much of the rest of the country too.

Days before the anniversary, a veteran sage of UAE diplomacy, Anwar Gargash, foreshadowed the influential Gulf state’s direction of travel, saying “the era of militia with sectarian and regional dimensions has cost the Arabs dearly.”

An end to Iran’s proxy powerplays and a path to a Palestinian state. The question is how to get there from here, particularly as the butcher’s cleaver is ascendant over the diplomat.

For now, in the absence of successful peace talks, uncertainty is the new certainty.

This post appeared first on cnn.com

Oil and natural gas: Oil again above $75.00 on Friday

  • The oil price rose to $75.57 on Friday evening, reaching a new October high
  • On Friday, the price of natural gas rose to $3.14, a new four-month high

Oil chart analysis

The oil price rose to $75.57 on Friday evening, reaching a new October high. Last week’s bullish price jump was 10.00%. After the formation of a new high, oil meets resistance and pulls back to the $74.45 level. This week it is important for us to hold above the $74.00 support zone. A break below would signal a further pullback, and we would have to test the EMA 50 moving average and the $73.00 zone.

If the support is insufficient, we expect a further pullback to a new low. Potential lower targets are $72.00 and $71.00 levels. For a bullish option, the oil price needs to be held above the $74.00 support zone. From there, we can expect to see the initiation of a new bullish consolidation. Potential higher targets are $76.00 and $77.00 levels.

 

Natural gas chart analysis

On Friday, the price of natural gas rose to $3.14, a new four-month high. The formation of this high was soon followed by a strong bearish impulse and a fall to $2.98. The price is again below $3.00 and it closed there at the end of the trading day. Despite the strong bearish consolidation, if we manage to stay above $2.95 last week’s support zone, we can hope for a new bullish consolidation.

Potential higher targets are $3.05 and $3.10 levels. For a bearish option, we need a negative consolidation below $2.95. In that zone, we will try to get support from the EMA 200 moving average. This time, we need an impulse below and the formation of a new low. Potential lower targets are $2.90 and $2.85 levels.

 

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The dollar index rose above 102.50 after Friday’s top news

  • On Friday, the dollar index rose to 102.68, forming a new October high

Dollar index chart analysis

On Friday, the dollar index rose to 102.68, forming a new October high. Positive news for NFP, The unemployment rate and Average Hourly Earnings influenced us to see a strong bullish impulse from 101.85 to 102.60. At the end of the day, the index stopped at 102.48.

During this morning’s Asian trading session, the movement was in a narrow range of 102.40-102.60. The market is very calm for now, and we will probably see more volatility on the chart only during the US session. An impulse to 102.80 would be an excellent sign that we continue on the bullish side. After that, we expect the dollar index to reach 103.00 levels. The previous time we were at that level was a month and a half ago.

 

The index could take a step lower this week to consolidate better

For a bearish option, we need a negative consolidation and a drop below the 102.40 level. Thus, we move to a new daily low and confirm the bearish pressure on the dollar. After that, we should see a further pullback to 102.20. There, we will come across the EMA 50 moving average, which was stable support for us last week. This time, we are looking for a break below and a continuation of the path to the bearish side. Potential lower targets are 102.00 and 101.80 levels.

This week, the volume of important economic news is lower. Tomorrow, RBNZ plans to cut interest rates from 5.25% to $4.75, later in the US session, US Crude Oil Inventories, 10-year Note Auction, and FOMC Meeting Minutes. The FOMC meeting could affect the larger movements of the dollar index. Hints of future monetary policy: The interest rate cut by the Fed is the most important report for the US currency. Friday’s news showed that the US economy is stable. That should be a good sign that the Fed should continue to cut interest rates to keep pushing the US economy.

 

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