US Secretary of State Marco Rubio commenced the Trump administration’s foreign policy agenda with an Indo-Pacific “Quad” meeting involving Australia, India, and Japan. Known for his tough stance on China, Rubio emphasized countering Beijing’s influence as a priority, labelling it the “most potent adversary” to US prosperity. The Quad, originally formed in 2007, now plays a central role in US-China relations. Rubio called for a pivot from globalism to prioritizing US national interests. This aligns with President Trump’s aggressive trade policies, including threats of tariffs on Chinese imports and demands for TikTok’s sale to US owners, signalling a confrontational direction.
SYRIA ENDS RUSSIAN LEASE OF NAVAL BASE
Syria’s new government has annulled a 2017 treaty granting Russia a 49-year lease on the port of Tartus, a key Mediterranean naval base. The agreement, negotiated under ousted leader Bashar al-Assad, gave Russia 65% of the port’s revenues. Following Assad’s overthrow by Islamist rebels, the de facto authorities in Tartus demanded Russia’s immediate withdrawal and announced plans to redirect port profits to the Syrian state. Moscow has not yet responded to these developments. This move marks a shift in Syria’s foreign relations, with the new leadership also imposing trade bans on Russia, Iran, and Israel.
TRUMP LAUNCHES $100B AI INITIATIVE
US President Donald Trump announced a $100 billion AI infrastructure project, “Stargate,” in partnership with OpenAI, Oracle, Softbank, and other tech giants. The initiative aims to strengthen the US’s global tech leadership, particularly against China and includes plans for $500 billion in investments over four years. While the project promises significant technological advances, concerns about sustainability arise due to its energy-intensive nature, diverging from clean energy policies. The announcement boosted US tech stocks, including Oracle and Nvidia, but energy prices dropped amid expectations of increased US production.
ARAMCO PREDICTS OIL DEMAND GROWTH
Aramco CEO Amin Nasser forecasts a rise in global oil demand by 1.3 million barrels per day (bpd) in 2025, bringing the total to approximately 106 million bpd. Speaking at the World Economic Forum in Davos, Nasser highlighted the market’s health despite uncertainties such as US sanctions on Russian crude. He noted Saudi Arabia’s alignment with OPEC+ agreements, producing at three-quarters capacity to stabilize markets. Nasser also revealed Aramco’s focus on global liquefied natural gas (LNG) expansion through MidOcean, where it holds a 51% stake. The company sees opportunities despite geopolitical challenges, emphasizing strategic growth in the energy sector.
SCHOLZ MEETS MACRON IN PARIS
German Chancellor Olaf Scholz travelled to Paris for a meeting with French President Emmanuel Macron on the anniversary of the 1963 Elysee Treaty. Key topics include Europe’s response to US President Donald Trump’s trade policies, the war in Ukraine, and the Middle East conflict. Speaking at the World Economic Forum earlier, Scholz emphasized defending free trade against isolationist policies and reiterated the importance of a strong, sovereign Europe in collaboration with the US. Macron echoed similar sentiments in November, committing to deeper EU unity. Both leaders aim to fortify Europe’s stance amid challenges posed by Trump’s administration.
