US and Japan signed a framework agreement to secure rare earths and critical minerals supply, aiming to reduce dependence on China, which dominates over 90% of global rare earth processing. The deal includes economic policy tools, investment, and stockpiling strategies, amid ongoing US-China tensions and upcoming talks between Trump and Xi Jinping. Japan also plans significant investments in US energy, including LNG, to diversify away from Russian and Australian sources, while urging Japan to replace Russian energy imports with US supplies.
Ukraine claimed to have attacked the Druzhba oil pipeline in Russia's Bryansk region, causing fire damage, as part of its broader efforts to target Russian energy infrastructure in response to the ongoing conflict. Despite these attacks, oil supplies to Hungary and Slovakia reportedly remain unaffected, continuing to buy Russian energy.
Israel's military strikes against Iran caused a nearly 9% surge in Brent crude oil prices and led to declines in global stock markets due to fears of a broader Mideast conflict disrupting energy supplies, with concerns particularly about Iran's strategic position and its impact on global oil exports.
Conflict in the Middle East, particularly the attacks by Yemen’s Houthi rebels in the Red Sea, is disrupting a crucial energy lifeline for Europe, impacting the supply of liquefied natural gas (LNG) from the Middle East. While the attacks have led to rerouting of shipments and cancellations, Europe's gas market is currently well supplied, with little impact on natural gas prices due to weak demand and abundant storage. However, there are concerns about potential escalation and disruption of shipping through the Strait of Hormuz, as well as debates over the role of U.S. gas exports in European energy security amid climate change considerations.
