The $10 Billion Energy Corridor That Could Bypass Hormuz

By Eurasianet - Jun 16, 2026

• The Four Seas Initiative proposes a network of pipelines and transport links connecting the Persian Gulf, Mediterranean, Black Sea, and Caspian regions through Syria and Turkey.
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• The plan envisions mobilizing up to $10 billion in infrastructure investment and eventually transporting up to 4 million barrels per day of oil and up to 50 bcm of natural gas annually to Europe.
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• Supporters argue the project could boost European energy security, attract Gulf investment, and generate billions of dollars in annual transit and production revenues for Syria.
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The extended disruption caused by the US-Iran conflict highlights a need for diversifying energy export routes to reduce dependency on shipping via the Strait of Hormuz. A new initiative launched by the Washington, DC-based New Lines Institute seeks to develop Syria and Turkey into major energy distribution hubs.

The Four Seas Initiative outlines an expansive framework for redirecting energy export flows in ways that can lessen European dependence on Russian and Iranian oil and gas while directing investment from Gulf states toward Western-aligned infrastructure projects.

The initiative – spanning the Persian Gulf, along with the Black, Caspian and Mediterranean seas – strives to expand overland export routes out of the Gulf toward Syria and Turkey, via Iraq and Jordan. An ancillary component calls for connecting new export routes with export networks in the Caspian and Black Sea basins.   

“The post-Assad stabilization of Syria opens a narrow but historically decisive window to transform the Levant from a theater of energy conflict into a continental energy corridor,” states a concept paper published by the New Lines Institute (NLI). 

“The Four Seas Initiative would deliver four compounding strategic goods: European energy sovereignty from Russian and Iranian dependence; American commercial primacy in the Middle East’s most strategically leveraged infrastructure; Syrian economic reconstruction underwritten by transit revenues; and a durable geopolitical settlement that rewards alignment with the West,” 

The Four Seas concept is modeled after a similar framework in which 13 European Union member states are participating, dubbed the Three Seas Initiative. Launched in 2015, the Three Seas promotes connectivity in a variety of economic spheres, including energy, transportation and digital infrastructure.

The Four Seas plan calls for the establishment of an infrastructure consortium capable of mobilizing up to $10 billion to build pipelines along the Gulf-Mediterranean corridor. Once built out, the new exports routes are envisioned as being able to transport up to 4 million barrels of oil per day of oil and up to 50 billion cubic meters per year of gas to Mediterranean and European markets. This would enable Syria to generate from $8 billion to $12 billion annually in combined production and transit revenues, providing a steady revenue stream to rebuild the country.

Experts at the June 11 launch event in Washington lauded the Four Seas as realistic. But some pointed out that implementation still faces considerable challenges. 

“We see the need to find alternative routes to get things [energy] out,” said Robert F. Cekuta, a retired US diplomat who served as ambassador to Azerbaijan. “This is also a way to bring Syria back into the [community] of nations; it has been self-isolated for way too long. The downside is that you have to get people to sit down and get into the practicalities, to get into details to help make this happen, in terms of corporate relations, get companies involved, not just the oil companies, but the construction companies.”

By Eurasianet

U.S. EV Adoption Slows While Global Demand Accelerates

By Charles Kennedy - Jun 16, 2026

Electric vehicle sales in the United States are set to account for only 17% of all nationwide passenger vehicle sales in 2030, BloombergNEF said in its latest EV outlook, slashing its 27%-share projection from last year as the Trump Administration ended incentives for electric vehicles.

Back in 2024, the year before President Trump won a second term in office, BloombergNEF expected EVs to have a 48% share of total U.S. passenger car sales in 2030.

With the scrapping of the incentives for electric vehicle purchases, analysts, including those at BloombergNEF, have drastically reduced their EV sales projections for the United States.

While the U.S. EV momentum is certainly slowing, the rest of the world has just had a massive geopolitical incentive to boost EV adoption. The closure of the Strait of Hormuz and the following fuel price spikes in all regions have prompted more drivers to buy or consider buying electric vehicles.

Electric vehicle sales could hit nearly 30% of all car sales in the world this year as drivers accelerate a shift to EVs and hybrids amid spiking fuel prices in the wake of the Iran war, the International Energy Agency (IEA) said in its annual EV report last month.  

Following strong growth in 2025, this year EV sales are set to reach 23 million globally in 2026, accounting for almost 30% of all cars sold worldwide, the IEA said in its annual Global EV Outlook 2026 report.

In Europe, EV sales jumped by close to 30% year-on-year in the first quarter of 2026; in the Asia Pacific region excluding China, sales surged by 80%; and in Latin American EV sales soared by 75% between January and March compared to the same period last year, the agency added.

BloombergNEF’s annual Electric Vehicle Outlook (EVO) report expects over a quarter, or 27%, of cars sold globally in 2026 to be electric – up from 9% five years ago. More than half, 52%, of all passenger vehicles would be electric by 2035 globally, according to BNEF’s report.  

By Charles Kennedy for Oilprice.com

China’s Gasoline Car Market Is Crashing as Fuel Prices Surge

By Charles Kennedy - Jun 17, 2026

Gasoline car demand in China is slumping on higher fuel prices resulting from the crisis in the Middle East, with gas guzzlers such as Range Rover, fetching discounts of up to 60%, Bloomberg reported, citing Chinese media.

The report also cited data from the Chinese Passenger Car Association showing discounts on gasoline cars had almost doubled over the first five months of the year as oil—and fuel—prices crept up.

Chinese passenger car sales dropped by over 22% in May, data released earlier showed, while EV and hybrid vehicle sales rose strongly, coming to account for 62.9% of total car sales, although in absolute numbers their sales also fell, by a more modest 7.5%. Compared to April, however, car sales in May rose by 9.2%, the Wall Street Journal reported earlier this month, citing figures from the Chinese Passenger Car Association.

Beijing has made an effort to cap the rise in fuel prices, notably by tapping its massive crude oil inventories to ensure adequate supply to refiners since the war between the United States and Israel, and Iran began. However, it has been unable to shield local drivers from the price shock entirely, even as imports of crude dropped sharply amid the surge in benchmark prices.

China’s crude oil imports slumped to the lowest in eight years in May. The month’s total stood at 33 million barrels, or 7.8 million barrels daily, which compares to an average daily import rate of 11.6 million barrels last year. Fuel exports were also down, with Beijing careful to make sure there is enough diesel and gasoline for the domestic market—albeit at elevated prices. As a result, refinery run rates also fell markedly, to an average of 66.3%, with total volumes processed over the month down by 9.1% on the year to 53.72 million tons. This was the lowest average run rate in four years.

By Charles Kennedy for Oilprice.com

China Bets on Ultra-Deep Shale Gas to Boost Energy Security

By Irina Slav - Jun 17, 2026

China’s state-owned oil and gas major and top refiner Sinopec is ramping up exploration in the shale formations of the Sichuan basin with a view to increasing the country’s shale gas production by a third over the next ten years.

Currently, China’s shale gas total is below government targets, Reuters noted in a report on the news, adding shale gas represents only a tenth of China’s total natural gas production. Beijing has a shale gas output target of 80 to 100 billion cu m by 2030. This has prompted Sinopec and other state-owned entities to drill deeper into the shale formations, at depths of up to 5,000 meters.

Sinopec alone booked proven natural gas reserves of 236 billion cu m from a project called Ziyang Dongfeng last month, at a depth of 4,500 meters. Reuters noted this was a breakthrough in ultradeep shale drilling. Billions are being poured into this new exploration push, with industry executives expecting that production from the new deposits would scale in two to three years.

Sinopec, however, has pointed out that the task would be a challenge. Drilling at such depths goes with problems such as uncertainty about the reservoir characteristics, complex accumulation mechanisms, difficulty in drilling due to the thickness of the formation, as well as the ever-present ultradeep drilling challenges of heat and pressure.

Despite these challenges, shale exploration is an important part of China’s push to boost its domestic oil and gas production in a bid to reduce its significant exposure to imported energy commodities. The country is the world’s biggest oil importer and a top-three natural gas importer. Despite a rather diversified base of suppliers in both commodities, China has made it a priority to increase its degree of self-reliance in hydrocarbon energy, alongside its alternative energy growth.

By Irina Slav for Oilprice.com

 

Egypt Clears $6 Billion in Energy Debt and Opens Door to a New Gas Boom

By Simon Watkins - Jun 16, 2026

• Egypt has cleared nearly $6.1 billion in arrears owed to international oil companies, paving the way for a new wave of investment from Western energy majors, including Shell, Chevron, Eni, and BP.
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• The country is emerging as a strategic battleground between the U.S. and its allies on one side and China and Russia on the other.
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• Beyond hydrocarbons, Egypt's importance stems from its control of the Suez Canal and SUMED pipeline
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The announcement from Egypt’s petroleum and mineral resources minister Karim Badawi that the country has paid all its outstanding debts to foreign oil firms is as welcome to international oil companies and their governments as it is to the country itself. Egypt has become one of the West’s prime targets in the hunt for replacement gas supplies after the loss of Russian flows following the 24 February 2022 invasion of Ukraine. Officially, it holds around 93 trillion cubic feet (Tcf) of proven natural gas reserves, but unofficially, it is believed to hold three or four times that at least. In fact, the U.S. Geological Survey estimates that the Nile Delta Basin Province alone holds up to 286 Tcf of undiscovered, technically recoverable natural gas. Its strategic weight is amplified by its sitting astride so many critical hydrocarbon transit routes, and by its longstanding political influence across the Arab world. So, the payment of the near-US$6.1 billion owed to international firms clears the way for the planned expansion of Western gas and oil developments across the country. However, as with all such global energy reservoirs, China and Russia are looking to do precisely the same thing and overtake the significant on-the-ground advantage established by the West.

Looking ahead, Egypt has implemented a strict, multi-layered economic defence mechanism specifically designed to prevent another vicious cycle of foreign currency depletion and runaway debt. It was the enormous wave of development of primarily Egypt’s gas reserves that previously helped exacerbate the serious currency problem in the country that began in earnest after Russia invaded Ukraine. Not only did this dramatically increase prices for wheat in the country (one of the world’s biggest importers of the foodstuff) but it also led to the removal of billions of dollars’ worth of foreign investment from the country. That said, on 6 March 2024, Egypt was allowed by the IMF to expand its US$8 billion financial support package and further offers of financial aid were opened from the World Bank and the European Union. The key measure in this debt-defence package that will work to the advantage of foreign firms operating in Egypt is that it is drastically reducing the level of state ownership in energy projects to further limit the country’s sovereign liability if projects face delays. Another key measure likely to significantly reduce the chance of a new debt spiral precluding regular payments to international oil companies is the abandonment by the Central Bank of Egypt of the artificial pegging of the Egyptian pound.

Given the very recent settlement of its energy sector debt, Egypt is likely to see a major expansion in the activity of Western firms in the very near future. British supermajor Shell is targeting Q4 this year for first gas at the Mina West field in the deepwater Northeast El Amriya concession in the Mediterranean Sea. Initial flow tests are clocking in at 45 million standard cubic feet of gas per day (mmcf/d) alongside 1,000 barrels per day (bpd) of high-value condensates, while Phase 1 of the project is engineered to inject a total of 160 mmcf/d of gas and 3,000 bpd of condensates directly into Egypt’s domestic grid. Shell is also set to further explore the Sirius exploratory well and the potentially ultra-high-reward Velox well in the North Cleopatra block within the Herodotus Basin. At the same time U.S. supermajor Chevron has launched new drilling at the giant Nargis field, with a very conservatively estimated 3.5 Tcf of natural gas reserves. The firm has also secured a 27% participating interest in the ultra-deepwater North Cleopatra offshore block that places it directly alongside operator Shell (36%), QatarEnergy (27%), and Tharwa Petroleum (10%) in a massive collaborative exploration front along some of Egypt’s primary gas assets. Moreover, Italian giant Eni has committed to an US$8 billion investment plan, including fast-track development at the newly unveiled Denise exploration well (which holds around 2 Tcf of gas) in the East Mediterranean. Meanwhile, Great Britain’s BP has pledged a US$5 billion exploration framework to fund new wells in the Mediterranean and Nile Delta, building on its historic US$12 billion investments in the West Nile Delta project.

That said, China has now shifted from its previous focus in Egypt on logistics and manufacturing in the Suez Canal Economic Zone (SCZONE), to its upstream sector.  State-owned supermajor China National Offshore Oil Corporation announced its first investment in Egypt’s gas and oil sector last October, targeting deepwater blocks in both the Mediterranean and the Red Sea to secure an entry point into North African upstream markets. Its United Energy Group had earlier signed a memorandum of understanding to explore immediate joint investment opportunities in oil and gas production, renewable energy, and regional energy trading. Underscoring these developments as part of a broader supply chain integration, Chinese firms also launched a US$2.4 billion logistics and container terminal investment at Ain Sokhna Port. This is intended to streamline commodity and energy flows out of the SCZONE. Meanwhile, Russia views Egypt as a critical geostrategic partner to redirect its trade and establish a permanent energy gateway into Africa and the Middle East, given tightening Western sanctions on it. To this effect, state-controlled Zarubezhneft has committed to a US$14 million drilling agreement targeting the onshore North Khatatba block in the Nile Delta, while Rosneft maintains a 30% stake in the giant offshore Zohr gas field. On a broader note, Russian President Vladimir Putin has proposed a framework to transform Egypt into a centralised Russian grain and energy hub, looking to blend fuel and agricultural distributions to sidestep European shipping sanctions. The leader’s longer-term ambitions were reflected in the US$25 billion financing package agreed in 2017 to construct the Al-Dabaa nuclear power plant in Egypt. The construction phase as stalled at around 33% complete, but the first reactor is still supposedly on track to connect to the power grid in 2028, with all four units fully operational by 2030. Given how the U.S. and its allies have regarded Iran’s nuclear industry over the years, it appears unlikely that these deadlines will be met.

The degree to which both Western and Eastern powers want to expand their footprints in Egypt reflects more than just the country’s gas and oil reserves. For a start, it is also the only country in the Eastern Mediterranean gas hotspot region with operational liquefied natural gas (LNG) export capacity and is consequently ideally placed to become the top regional export hub for the gas. Equally important is Egypt’s command of one of the world’s great maritime bottlenecks -- the Suez Canal -- a route that historically has carried roughly a tenth of global oil and LNG shipments. The country also controls the Suez–Mediterranean Pipeline, linking the Ain Sokhna terminal on the Gulf of Suez to the export hub at Sidi Kerir on the Mediterranean coast. This line provides a critical workaround for moving Gulf crude to the Mediterranean without relying on the canal itself. The strategic value of the Suez system is heightened further by the fact that it is among the few major energy transit points not under China’s direct influence. Specifically, Beijing already has considerable control over the Strait of Hormuz through the all-encompassing ‘Iran-China 25-Year Comprehensive Cooperation Agreement’, as fully analysed in my latest book on the new global oil market order. The same deal also gives China a hold over the Bab al-Mandab Strait, through which commodities are shipped upwards through the Red Sea towards the Suez Canal before moving into the Mediterranean and then westwards. This was achieved as it lies between Yemen (the Houthis having long been supported by Iran) and Djibouti (over which China has also established a stranglehold through debts connected to its multi-generational Belt and Road Initiative’ power-grab project).

Finally, Egypt has long been viewed as a political heavyweight in the Arab world — in many respects rivalling, and at times surpassing, Saudi Arabia’s influence. Cairo was a central force behind the rise of Pan?Arabism after the two World Wars, the movement that argued that Arab strength lay in shared political, cultural, and economic identity, with its most prominent advocate being Egypt’s own Gamal Abdel Nasser, who led the country from 1954 to 1970. The era produced several defining expressions of this ideology: the union between Egypt and Syria as the United Arab Republic from 1958 to 1961; the creation of OPEC in 1960; repeated confrontations with Israel; and ultimately the 1973–74 oil embargo — all explored in detail in my latest book. For both the West and the East, Egypt is still ultimately about far more than gas and oil. It is a contest for the only state in the region that combines major reserves, LNG export capacity, control of critical sea lanes, and a legacy of political leadership across the Arab world.

By Simon Watkins for Oilprice.com

 

India’s Solar Capacity Set for 22% Annual Growth Through 2035

By Tsvetana Paraskova - Jun 15, 2026

India’s solar capacity is set to surge by 22% each year by 2035 as the data center boom will drive increased power consumption, a new report by Nuvama showed on Monday.   

The consultancy estimates that India’s total power demand will rise by 6% every year over the next decade, “driven by economic growth, rising urbanisation, manufacturing expansion and increasing electrification across sectors,” according to the report cited by Indian news outlet ANI.

Solar growth will vastly outpace overall power demand as power-intensive data centers will drive 22% compound annual growth rate (CAGR) in solar energy capacity from 2026 to 2035, the report found.

“Our base case suggests green hydrogen and data centre capacity shall add another 251GW solar capacity, while it is 406GW capacity in the bull case scenario,” Nuvama analysts said in the report.

“Given solar capacity expansion in our base case, the share of solar shall rise from 28% in FY26 to 61% by FY35 and to 65% in the bull case,” they added.

India expects to nearly quadruple its solar power capacity and triple wind power-generating assets within ten years, according to the new Generation Adequacy Plan published by the country’s Central Electricity Authority earlier this year.

India projects to have a total of 509 gigawatts (GW) of solar power capacity installed by the end of the 2035-2036 fiscal year, up from 140 GW installed solar PV capacity as of January 2026.   

“The installed generation capacity projection in 2035-36 shows that the country is moving toward a strong transition to non-fossil energy. Renewable sources, especially solar PV, hydro, and wind, will dominate future capacity, supported by Energy Storage Systems,” according to the policy.

In 2025, India boasted that it was five years ahead of schedule when it achieved its target of having 50% of its installed electricity capacity coming from non-fossil fuel sources.

However, India's electricity grid is expanding at a slower pace than the boom in renewable energy installations, leading to an increased share of clean energy curtailments and threatening to slow the solar and wind boom in the world’s most populous country.   

By Tsvetana Paraskova for Oilprice.com

China Reclaims Solar Crown With Record-Breaking Perovskite Panel

By Alex Kimani - Jun 16, 2026

• China's Trina Solar has set a new world record for commercial-scale solar efficiency, achieving 29.2% conversion efficiency and 907 watts of output using advanced perovskite-silicon tandem technology.
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• The breakthrough surpasses South Korea's Qcells and highlights growing progress in combining perovskite and silicon layers to capture more sunlight and generate significantly more power from the same panel area.
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• While perovskite technology promises lower costs and efficiencies above conventional silicon panels, the industry's next challenge is proving long-term durability and scaling production
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Last year, South Korea’s Qcells set the world record for large-area silicon solar cell efficiency, a development that promised to dramatically shrink the size of solar projects and slash costs. Qcells, a subsidiary of South Korea’s giant conglomerate Hanwha Corp, set the world record after achieving 28.6% efficiency by combining a top light-absorbing layer of perovskite with a bottom silicon layer to capture a broader spectrum of sunlight. For some context, high-end commercial solar panels typically operate at 21% to 23% efficiency, meaning they convert about a fifth of the sunlight striking them into usable electricity. More importantly, unlike many high-efficiency records achieved only on lab-scale cells, Qcells’ efficiency was demonstrated on an industry-standard cell designed for mass manufacturing.

But China has now managed to wrestle back the title of the world’s most efficient solar panel maker: leading Chinese solar firm Trina Solar has officially shattered the world record for solar module efficiency, achieving a conversion efficiency of 29.2% and an unprecedented peak power output of 907 watts.

Trina’s solar cell isn’t just any solar cell. Its record was achieved using a perovskite-on-silicon tandem design, which stacks two different solar materials on top of each other to capture a broader range of sunlight. The perovskite layer absorbs higher-energy wavelengths while the silicon layer captures light that would otherwise pass through, allowing the cell to convert more of the sun’s energy into electricity. The company also developed a new interconnection structure between the two layers that reduces energy losses and improves the flow of electrical current through the cell, helping push efficiency to record levels.

Like Qcells’ earlier record, Trina achieved the breakthrough on industry-standard 210 mm wafers rather than small laboratory cells. The company reported efficiencies of 29.2% on full-size cells and 32.6% on half-cut cells, demonstrating that the technology can be manufactured at commercial dimensions. The resulting module produced 907 watts of power, up sharply from the company’s previous record of 808 watts and well above the output of conventional solar panels currently deployed in the field.

The result pushes perovskite technology further into commercial territory. Researchers have been posting impressive efficiency figures for years; the challenge has been reproducing them on modules large enough to manufacture at scale.

From Microscopic to Groundbreaking-Size

While individual lab cells have reached higher standalone efficiencies on a microscopic level, we are now talking about commercial scale applications. 

Conventional silicon panels are nearing the limits of what the technology can deliver. Perovskite-silicon tandem cells offer a way around that by capturing a broader range of sunlight and generating more electricity from the same panel area.

Now, the race is to manufacture them at scale and keep them operating reliably for decades in the field.

Perovskites are a class of materials that share a specific, diamond-like crystal structure. Perovskite solar cells can convert a wider spectrum of sunlight into electricity compared to traditional silicon. 

Indeed, perovskites can be layered directly on top of traditional silicon solar cells, with these "tandem" cells absorbing the colors of light that silicon misses and pushing theoretical maximum efficiencies to over 40%. They can be applied in extremely thin layers, allowing them to be sprayed or printed onto flexible films, windows or curved building surfaces. 

Further, unlike silicon, which requires high-temperature, energy-intensive manufacturing, perovskites can be processed into inks and printed at room temperature, dramatically lowering production costs. Whereas commercially available perovskite solar cells exist, they are currently not yet widely available for standard residential rooftop installations, in large part because pure perovskite cells degrade rapidly when exposed to outdoor elements like moisture, heat, and UV light.

However, several pioneering companies have started manufacturing and shipping them at scale. This includes California-based Caelux, whose "Active Glass" technology allows factories to build Hybrid-Tandem modules right on their existing assembly lines without redesigned silicon cells or complex overhauls, while UK-based Oxford PV has started shipping modules that boast efficiencies up to 24.5% to utility-scale customers in the U.S. and Europe.

By Alex Kimani for Oilprice.com

 

ETM seeks other Spanish mines as it waits for Greenland rare earth resolution

Reuters | June 15, 2026 | 

Penouta mine in Spain. Credit: Strategic Minerals Europe

Energy Transition Minerals is hoping to expand further in Spain’s Galicia province as it awaits a resolution of legal challenges over its huge rare earths project in Greenland, its managing director said.

Daniel Mamadou told Reuters in an interview that the company expects to restart mining in 18-24 months at the Penouta tin and tantalum project it bought last year in Galicia, where operations were suspended in 2024 after a dispute over environmental permits.

“Galicia itself has a very ambitious plan to restart its mining industry,” Mamadou said, adding that up to 52 old mines are due to be tendered for development.

“We believe that the Penouta operation could be the centre of an expansion in Galicia … we might be able to benefit from economies of scale and position.”

ETM has detailed neither expected production levels nor capex at the Penouta project, but the International Tin Association said the mine produced 351 metric tons of tin in concentrate in 2023.

Seeking dialogue with Greenland

ETM owns the Kvanefjeld project in Greenland, one of the world’s largest undeveloped rare earth deposits, but has been halted from developing it since a 2021 government ban on uranium, a byproduct.

The company expects a court appearance later this year in its long-running legal dispute with the government over the project.

“We’ve also tried to push a parallel track of dialogue, which so far has not been yielding any meaningful traction, but I think this is about to change,” Mamadou said.

Greenland has been advertising itself as a mining destination open for business, he added.

The firm also said last week exploration has identified new mineralized zones that contain uranium concentrations below the threshold in the government’s uranium ban.

ETM is also in dispute with China’s Shenghe Resources, its second biggest shareholder with a 6% stake, after ETM in April terminated a 2018 deal that envisioned the two jointly developing Kvanefjeld.

Asked if ETM had severed its relationship with Shenghe to attract investment from US and other Western investors as it seeks a Nasdaq listing, Mamadou declined to comment on the dispute.

(By Eric Onstad; Editing by Jan Harvey)

AU

Singapore to launch gold clearing with JPMorgan, other banks

Bloomberg News | June 15, 2026 |

Singapore skyline at the Marina. Stock image.

Singapore plans to launch a gold-clearing system this year, with banks including JPMorgan Chase & Co. and Deutsche Bank AG set to participate in the city-state’s push to become a hub in the global bullion market.

The Singapore Exchange will establish the over-the-counter clearing mechanism by the end of 2026, with inter-bank trading expected to build up from next year, said Gan Kim Yong, the country’s deputy prime minister and chairman of the Monetary Authority of Singapore.

“We are not seeking to replace established centers of gold trading and liquidity,” he said at the Asia-Pacific Precious Metal Conference on Monday. “Instead, Singapore can serve as a trusted node in the global gold ecosystem – connecting regional demand with global liquidity and supporting market activity during Asian hours.”

Singapore’s latest move intensifies competition with Hong Kong to become a major regional hub for trading gold. In recent months, both cities have advanced plans to capitalize on strong demand for the precious metal, with many banks remaining bullish about the long-term prospects for an asset coveted by investors as an alternative store of wealth.

Hong Kong’s central clearing system is expected to be ready by July and the special administrative region has signed up five Chinese and six international banks.

The new clearing system in Singapore will serve as “a foundational layer for the clearing and settlement of gold flows during Asian trading hours,” said SGX Group chief executive officer Loh Boon Chye. “We are also exploring a physically deliverable gold futures contract to give the market an exchange-based tool for price discovery and risk management.”

In Singapore, DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., United Overseas Bank Ltd. and ICBC Standard Bank Plc, as well as JPMorgan and Deutsche Bank, will take part as clearing members after signing a memorandum of understanding with the Singapore Exchange at the conference on Monday.

“As investor demand for global gold grows, we see Singapore playing a complementary role alongside other major hubs by supporting liquidity across time zones and meeting evolving client needs,” said Wai Mei Hong, JPMorgan’s Singapore senior country officer.

The clearing system will be aligned with the industry-standard London Good Delivery framework for large bars, as well as delivery and settlement standards for kilobars adopted by major exchanges in Chicago and Shanghai.

“The gold market works best when liquidity and infrastructure are connected across regions,” Deputy Prime Minister Gan said. “With an established clearing infrastructure and strong market ecosystem, Singapore can support a more seamless global market across time zones – from Asia, to Europe, to the Americas.”

MAS will also introduce central bank gold vaulting services by October this year, he said, and will allow foreign monetary authorities to actively manage bullion holdings with a select group of banks based in the city-state. Attracting sovereign reserves would significantly boost liquidity in the local market and strengthen Singapore’s standing as a global trading center.

The central bank is also set to expand tax exemptions for eligible funds and family offices investing into physical investment precious metals, Gan said, referring to a specific technical term on the purity and form of gold.

As the government pushes to strengthen Singapore’s gold sector, some local banks are also rolling out products to meet growing demand. DBS, the city-state’s biggest lender, will allow customers to hold tokenized gold in the second half of the year. Meanwhile, institutional and high-net-worth clients of OCBC can now trade and store gold with the bank.

(By Yihui Xie)

London gold market weighs earlier auction to suit Asian traders

Bloomberg News | June 15, 2026 |

Credit: LBMA

The London Bullion Market Association is considering moving its morning gold auction to an earlier time to accommodate traders in Asia.

The potential shift would be “to reflect and to allow price discovery within the Asian time frame,” LBMA chief executive officer Ruth Crowell said on Monday. This is “something that I know the market has asked for for many years, but I think it comes at the right time,” she told the Asia-Pacific Precious Metal Conference in Singapore.

Crowell did not specify a new time or times under consideration, or say when the possible change might occur.

The LBMA Gold Price is currently set twice daily, at 10:30 a.m. and 3:00 p.m. London time, in US dollars on an electronic platform. The price is the benchmark used by miners, refiners, investors and central banks worldwide.

A daily London pricing auction was first introduced in 1919, with a second, afternoon auction added in 1968 to reflect growth in the US market. The current benchmarks replaced the old London Gold Fix, a telephone-based system that was discontinued in 2015.

The potential shift to an earlier London auction underscores the growing weight of Asian demand in the global bullion market. Gold has been thrust into the spotlight as geopolitical tensions and trade uncertainties drive central banks and investors toward the metal as a safe haven, with the spot price soaring to a record earlier high this year before retreating after the outbreak of the US-Iran war.

(By Yihui Xie and Preeti Soni)

 

Gold fever sends some vintage luxury watches to the melting furnace

Reuters | June 13, 2026 | 

Stock image.

Omega’s Constellation watch has been flashed in campaigns, movies and at the Met Gala by stars like George Clooney and Nicole Kidman, turning it into a symbol of luxury and glamour.

But with gold prices near record highs struck in January, some such classic watches are being melted down as the value of their metal content outstrips their resale worth.

Used models by the likes of Omega and LVMH’s TAG Heuer are most hit by the trend, according to Reuters interviews with over a dozen traders, industry experts, and investment advisers.

British dealer Jon White of Gold Traders melted down an 18-carat late-1970s Constellation in excellent condition in May, one of dozens of mainstream luxury watches he has had scrapped this year as demand for investment gold has risen.

“Beautiful watch. But in reality, had the customer consigned that to auction, what would they have achieved?” White, who also manages an auction house, told Reuters.

The gold content of the Constellation watch, one of many models produced by Swatch-owned Omega, was worth £5,750 ($7,749), 35% more than its estimated £4,000-4,500 auction value, White said.

James Lamdin, founder of Watches of Switzerland’s second-hand unit Analog Shift, said melting was “primarily happening with contemporary pre-owned and also with older vintage watches that are not already collectible.”

Spokespersons for Swatch and Rolex said they would not comment for this story. LVMH, Richemont, Patek Philippe and Audemars Piguet did not respond to requests for comment.

Liquid gold

Gold prices surged to a record $5,600 an ounce in January as geopolitical concerns and trade worries pushed investors towards safe-haven precious metals. Gold now hovers around $4,200 per ounce, almost double its 2024 average.

The market price for used watches has not moved in the same way, however.

“I find it very sad, because obviously once something has been melted, it’s gone forever,” said Adrian Hailwood, a specialist in horological history.

There are no official figures showing how many luxury watches are being melted. World Gold Council data shows overall gold recycling in the first quarter rose 5% to 366 tonnes, while gold jewellery demand rose 31% in value to $47 billion.

Watches can hold anything from a sliver of gold to more than 200 grams, meaning their scrap value can run into tens of thousands of dollars. In an Omega Constellation, the gold can be found in the case and the strap.

With gold expected to reach between $5,400 and $6,300 an ounce this year, the pressure to dismantle some watches will continue, especially as traders that resell them must cover costs and the expense of providing a warranty.

New watches that are over-produced might also be melted down.

“I’ve seen a lot of totally mediocre watches get melted down,” said Lamdin. “There’s a lot of unsold overstock in the Swiss market. And those watches are basically brand new, unworn, and they’re just getting stripped down… they made too many of them.”

“But when you have something that’s vintage and rare and has some story or some patina, that’s where it becomes a short-sighted tragedy.”

The resale trap

High-end brands that tightly manage new production like privately owned Patek Philippe and Rolex command the highest premiums over melt value, three industry experts said.

For some models “the wait lists are astronomical. You’re talking anything from two to eight years,” said Simon Lazarus, head of PR and content at online luxury watch platform Chrono Hunter.

Rolex accounted last year for 61% of the sales value of new Swiss watches priced above 3,000 Swiss francs ($3,770), up from 57% in 2023 despite lower volumes, according to Vontobel.

Less exclusive brands like TAG Heuer, Breitling and Omega struggle to command high new retail prices, however, as buyers can buy a second-hand timepiece for much less.

Models like Omega’s Speedmaster often depreciate sharply once sold, exposing them to scrapping, three experts said.

To sell or not to sell

Higher gold prices motivated retired New York engineer Mitchell Talisman to sell two gold watches and a chain containing a combined 35 grams of gold with 58% purity for $2,660 cash in December.

“I’d had a bunch of stuff sitting in a safety deposit box for over 10 years,” he told Reuters.

For some owners however, the idea of selling a watch only for it to be melted by a dealer is too much to bear.

“It may be a family piece, it may be their first watch,” said Hailwood.

“They don’t like the idea of it being destroyed, so they keep it.”

($1 = 0.7421 pounds)

($1 = 0.7873 Swiss francs)

(By Alessandro Parodi; Editing by Lisa Jucca and Alexandra Hudson)

 

Lobito railway receives first Congo shipment after flood repairs

Bloomberg News | June 15, 2026 | 

Credit: Lobito Atlantic Railway

Lobito Atlantic Railway received its first copper shipment from the Democratic Republic of Congo since reopening a flood-damaged section of the corridor, restoring traffic on a key export route for central African minerals.

The link between the port of Lobito and Huambo, closed for about two months because of severe flooding, was restored after emergency repairs, the railway operator said in a June 13 statement.

“The arrival of this first international train from the DRC demonstrates the resilience of our operation and the extraordinary commitment of our teams,” LAR chief executive officer Nicholas Fournier said in the statement.

LAR said it maintained cargo flows during the disruption through a contingency plan that saw freight transferred between trains and trucks on either side of the flood-damaged section of the track.

The corridor is a key conduit for copper and cobalt exports from Congo to the Atlantic and forms part of Western-backed efforts to develop transport links for critical minerals.

(By Candido Mendes)