Gulf’s Renewable Pivot, Gold’s Record Run & Oil’s Next Move: The Global Energy and Market Shake-Up

The Gulf region is making an ambitious pivot towards renewable energy, leveraging its wealth of fossil fuel revenues to fund massive solar and battery projects. The UAE’s Masdar has announced a record-breaking $6bn solar farm with 19GWh of storage, positioning renewables as a reliable baseload power source. Meanwhile, Saudi Aramco is diversifying into lithium production, underscoring the region’s commitment to clean energy supply chains.

With solar energy costs now rivalling gas, the Gulf states see renewables as a strategic move to free up hydrocarbons for export. However, despite aggressive targets, such as Saudi Arabia’s aim for 50% renewables by 2030, the region faces logistical challenges, particularly in integrating these projects into grids designed for fossil fuels. Yet, with capital, technology partnerships and ideal solar conditions, the Gulf is poised to become a dominant force in the global energy transition.

Gold surged to a record high of $2,798 per troy ounce, driven by investor concerns over potential US tariffs and supply constraints in London. Market jitters stem from President Trump’s threat to impose 25% tariffs on Canadian and Mexican imports, raising fears that gold, historically exempt from duties, could be affected. Meanwhile, a rush to stockpile bullion in New York’s Comex has depleted available supplies in London, where withdrawal times now stretch up to eight weeks.

A weakening US dollar further bolstered demand, making gold more attractive globally. With short positions at their lowest since 2020 and central banks in emerging markets continuing to buy, gold’s safe-haven appeal remains strong. While analysts see further gains in the short term, the rally’s pace may slow if US rate cuts materialise later in the year, diminishing one of gold’s key tailwinds.

Oil prices also climbed, with the US West Texas Intermediate crude advancing to $73.48 per barrel in late trading, up 1 percent while Brent crude futures for April rose 0.7 percent to $76.54 a barrel in extended trading. This came after the Trump administration said it would decrease proposed tariffs on Canadian oil.

Economists have warned tariffs would raise the cost of imported materials used by US manufacturers, hike prices for American consumers and reduce global trade flows, Bloomberg reported on Saturday. Despite such concerns, Trump maintained in the Oval Office on Friday that “tariffs don’t cause inflation.”