Trade tensions and US-Iran issues boost gold and silver; AI market frenzy in China; Apple’s Cook hints at visual AI breakthrough.

Trump Considers Military Action Against Iran

Initial Strikes and Future Plans

According to the New York Times, President Trump has informed his advisors that if diplomatic efforts or initial targeted strikes do not compel Iran to abandon its nuclear program, he may consider a larger military action aimed at regime change in Iran within the next few months. U.S. and Iranian negotiators are set to meet in Geneva on Thursday, which may be the last chance to avoid military conflict. Trump is weighing various options should negotiations fail, with a preference for initial strikes in the coming days to signal to Iranian leaders the necessity of abandoning their nuclear ambitions.

Upcoming Negotiations

Reports from AXIOS indicate that U.S. and Iranian representatives will discuss a detailed nuclear agreement proposal in Geneva. A senior U.S. official stated that the Trump administration expects to receive this proposal by Tuesday at the latest. Current diplomatic efforts are seen as a final opportunity for Iran before potential large-scale military actions by the U.S.

Trade Tensions and Market Reactions

Gold and Silver Prices Rise

Amid rising trade tensions, gold and silver prices have surged due to increased safe-haven buying. President Trump announced plans to raise a global tariff rate to 15%, replacing several tariffs deemed illegal by the Supreme Court. Analysts noted that this move has reignited trade tensions, supporting higher gold and silver prices. As of the latest reports, spot silver rose over 3% to $86.91 per ounce, while New York silver futures increased over 5% to $87 per ounce.

U.S. Trade Agreements Remain Valid

U.S. Trade Representative Robert Lighthizer confirmed that bilateral trade agreements with countries like the EU and South Korea remain valid despite the Supreme Court's ruling on tariffs. He emphasized the importance of these agreements and the expectation of full support from trade partners.

AI Market Dynamics

Diverging Market Trends

While the U.S. market faces "AI panic" with investors selling off software companies, Chinese investors are aggressively buying AI-related stocks. This divergence reflects differing investment logic, with Chinese investors focusing on the benefits of AI rather than competition threats to existing businesses.

UBS Bullish on Lithium

UBS has raised its lithium price forecasts, indicating that the market has entered a third super cycle for lithium prices. The report highlights the growing demand for electric vehicles and energy storage as key drivers for lithium demand, mentioning companies like Tianqi Lithium and Ganfeng Lithium.

Stock Market Reactions

U.S. Indices Rise

On February 20, following the Supreme Court's ruling against Trump's tariffs, U.S. stock indices closed higher. The Dow Jones rose 0.47%, the S&P 500 increased by 0.69%, and the Nasdaq gained 0.9%. Major tech stocks mostly rose, with Nvidia up 1.02% and Apple up 1.54%.

Tesla's New Cybercab

Tesla has launched its first Cybercab, a fully autonomous electric vehicle designed for robotaxi services, which lacks a steering wheel and pedals. Production is set to begin in April, with plans for a broader rollout of autonomous taxi services.

Conclusion

The geopolitical landscape remains tense with potential military actions against Iran, while trade tensions are influencing market dynamics. The AI sector shows contrasting trends between the U.S. and China, and significant movements in the stock market reflect investor sentiment amid these developments.