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Friday (June 20) was the last day for the spring session of Canada’s parliament before its summer break.

On the agenda for the day was a vote on bill C-5, “The One Canadian Economy Act,” which was introduced on June 5.

The bill is in part a response to the recent shift in US trade policy under Donald Trump’s administration. It will provide a new framework to fast-track projects of national interest, including mining and energy projects, to boost Canada’s economy.

However, it hasn’t been without controversy. Primarily, it has been met with opposition from some Indigenous groups, who feel it will override treaty obligations and environmental review processes.

In parliament, it also met some resistance from the conservative opposition, who amended the bill to close loopholes they felt would allow the government to skirt conflict of interest and lobbying laws.

The bill is widely expected to pass the House of Commons and the Senate, with broad support from the Conservative Party.

Also on Friday, Statistics Canada released April’s monthly mineral production survey.

The data shows across-the-board declines in both production and shipments of copper, gold and silver from the previous month.

Copper production dropped the most in April, down to 35.1 million kilograms from 40.1 million in March, while shipments slipped to 30.1 million kilograms from the 50.5 million recorded the previous month.

Gold and silver production fell slightly, with gold declining from 17,059 to 16,708 kilograms, and silver declining from 26,700 to 25,412 kilograms. However, shipments of both fell more precipitously between March and April. Gold shipments dropped from 19,049 to 14,848 kilograms, while silver shipments fell from 29,578 to 22,106 kilograms.

In the United States, the Federal Reserve held its fourth meeting of the year to determine the direction of the benchmark Federal Funds Rate on Tuesday (June 17) and Wednesday (June 18).

The central bank decided to hold the rate at the current 4.25 to 4.5 percent range, which it last set in November 2024. The decision comes as it awaits the effects of tariffs to be felt more broadly in the economy, noting uncertainty whether it will be a one-time shock or be more persistent through the rest of the year.

The decision fell in line with analysts’ expectations, who are not predicting a rate cut until the Fed’s September meeting.

Markets and commodities react

In Canada, major indexes were mixed at the end of the week. The S&P/TSX Composite Index (INDEXTSI:OSPTX) was largely flat, posting a small 0.14 percent loss during the week to close at 26,497.57 on Friday. The S&P/TSX Venture Composite Index (INDEXTSI:JX) fared worse, losing 2.18 percent to 711.18, although the CSE Composite Index (CSE:CSECOMP) jumped 1.58 percent to 117.36.

US equities were all in negative territory this week, with the S&P 500 (INDEXSP:INX) losing 0.55 percent to close at 6,967.85, the Nasdaq-100 (INDEXNASDAQ:NDX) slipping 0.23 percent to 21,626.39 and the Dow Jones Industrial Average (INDEXDJX:.DJI) sinking 0.88 percent to 42,206.83.

The gold price was down this week, losing 0.42 percent to US$3,371.39 at by Friday’s close. Although it jumped to a high of US$37.29 mid-week, the silver price pulled back and ultimately lost 0.82 percent to end the week at US$36.02.

In base metals, the COMEX copper price gained 1.88 percent over the week to US$4.88 per pound. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) posted a gain of 5.47 percent to close at 580.99.

Top Canadian mining stocks this week

How did mining stocks perform against this backdrop?

Take a look at this week’s five best-performing Canadian mining stocks below.

Stock data for this article was retrieved at 4 p.m. EDT on Friday using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.

1. Royalties Inc. (CSE:RI)

Weekly gain: 183.33 percent
Market cap: C$24.75 million
Share price: C$0.085

Royalties Inc. is a company focused on building cash flow through the acquisition mineral and music royalty assets.

The company has a 100 percent interest in the Bilbao silver property in Zacatecas, Mexico, which hosts silver, zinc and lead deposits. As silver prices improve, the company is seeking to monetize the property.

Shares in Royalties Inc. surged this week after its 88 percent owned subsidiary Minera Portree won its lawsuit against Capstone Copper (TSX:CS), asserting its ownership of a 2 percent net smelter return royalty on five mineral concessions at the Cozamin copper-silver mine in Zacatecas.

The protracted legal dispute began after Capstone re-assigned the royalty to itself through a 2019 contract without informing or paying Minera Portree.

Under the terms of the judgment, the 2 percent NSR will revert back to Minera Portree along with royalties for the exploitation of concessions between 2002 and 2019. The amounts for those royalties will be set at the execution phase. Capstone Gold is also ordered to pay royalties from the Portree 1 concession from August 2019 to present.

Earlier in the week, Royalties Inc. increased its stake in Music Royalties, which pays a 7.2 percent annual yield from 30 music catalogues. The company will now receive royalties of C$102,000 per year from its investment.

2. Altima Energy (TSXV:ARH)

Weekly gain: 100 percent
Market cap: C$21.14 million
Share price: C$0.42

Altima Energy is a light oil and natural gas exploration and development company with operations in Alberta, Canada.

Its primary asset is the Richdale property in Central Alberta. The property consists of five producing light oil wells and sits on 5,920 acres of long-term reserves. According to a company presentation from April 2025, the property hosts combined proved and probable reserves of just under 2 billion barrels of oil equivalent, with a pre-tax net present value of C$25.8 million.

The company also owns two wells at its Twinning light oil site near Nisku, seven producing wells at its Red Earth property in Northern Alberta and two multi-zone wells at its Chambers Ferrier liquid gas production property.

Although Altima hasn’t released news in the last few months, its share price surged mid-week.

3. Trillion Energy (CSE:TCF)

Weekly gain: 71.43 percent
Market cap: C$11.62 million
Share price: C$0.06

Trillion Energy is an oil and gas producer focused on supplying the European and Turkish markets.

The company owns a 49 percent share in the SASB gas field with Turkish Petroleum (TPAO) owning the remainder. The field is located in the southwestern Black Sea, and covers a license block area of 12,387 hectares. Trillion also owns a 19.6 percent interest in the Cendre oil field, with TPAO owning the majority 80 percent.

On April 26, the company released its 2024 year end reserve report. In the announcement, Trillion reported that its attributable total proved and probable reserves at the SASB gas field increased to 62.3 billion cubic feet of gas and 247 million barrels of oil, with a pre-tax NPV of US$363.6 million.

Trillion Energy’s share price climbed in the second half of the week. Although it did not put out a press release, the company stated in posts on X Wednesday and Friday that the partners are “actively engaged on-site” advancing gas lift operations through “carefully managed on-platform efforts.”

4. Search Minerals (TSXV:SMY)

Weekly gain: 52 percent
Market cap: C$18.81 million
Share price: C$0.380

Search Minerals is a rare earth element exploration and development company working to advance its flagship Deep Fox project in Newfoundland and Labrador, Canada.

The project is located near the port of St. Lewis on the Southeast Labrador coast and consists of 63 mineral claims covering an area of 1,575 hectares. The company also owns the nearby Foxtrot deposit. A May 2022 technical report reported a combined indicated mineral resource estimate for the two properties of 375 parts per million (ppm) praseodymium, 1,402 ppm neodymium, 185 ppm dysprosium and 32 ppm terbium from 15.09 million metric tons of ore.

Search Minerals released a corporate update on June 13 announcing that its shares were being reinstated for trading on the TSXV. The update detailed how, under previous management, the company’s TSXV listing was subject to a cease trade order in April 2024 due to the previous management team failing to file annual financial statements for 2023. Search’s new board and management team, elected and appointed in mid-2024, brought the company back into compliance.

Search recommenced trading Monday, and its shares climbed on June 19 after the company announced unreleased assay results from a 2022 Phase 4 drill program at Deep Fox. Highlighted assays included one hole with a 29.92 meter interval grading 256 ppm dysprosium, 1,848 ppm neodymium, 496 ppm praseodymium and 43.5 ppm terbium.

The company said the results validate their belief in the mineralization at the site, and that it would drive forward development of Deep Fox, which it called a generational asset, without delay.

5. Homeland Nickel (TSXV:SHL)

Weekly gain: 50 percent
Market cap: C$12.26 million
Share price: C$0.06

Homeland Nickel is an exploration company with projects in the US and Canada.

The company owns four nickel projects in Oregon: Cleopatra, Red Flat, Eight Dollar Mountain and Shamrock. The projects are in the early exploration stage, with the company being guided by historic work at each property.

Homeland is also working on the Great Burnt copper-gold project in Newfoundland and Labrador, Canada. The project is a 30/70 joint venture with Benton Resources (TSXV:BEX,OTC Pink:BNTRF), which earned its stake in the property through an earn-in agreement with Homeland in July 2024.

While the company did not release any news, on June 11, Noble Mineral Exploration (TSXV:NOB) and Canada Nickel’s (TSXV:CNC) announcement on June 11 of positive assay results from their joint venture Mann nickel project in Ontario. Homeland owns 2.95 million shares in Canada Nickel and 9.96 million shares of Noble.

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many mining companies are listed on the TSX and TSXV?

As of February 2025, there were 1,572 companies listed on the TSXV, 905 of which were mining companies. Comparatively, the TSX was home to 1,859 companies, with 181 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Pittsburgh Pirates reliever Dennis Santana has been suspended four games and fined for his altercation with a fan during an 8-4 win over the Detroit Tigers on June 19.

The statement said Santana has elected to appeal the suspension and fine, meaning he remains eligible to pitch for the Pirates until the appeal process comes to a close.

When asked after the game about the situation and what escalated it, Santana told reporters via an interpreter that he didn’t want to ‘get into’ the details of what caused it but said the fan ‘crossed the line’ a few times throughout the night. The fan was removed from the game by Tigers’ security, while Santana had to be walked back by a member of the Pirates’ bullpen staff.

‘Like I said, you guys know me and you know my temper. I’m a calm person and they crossed the line a few times. I would like to leave it at that,’ Santana said on June 19 through Pirates interpreter Stephen Morales.

Santana entered the game in the ninth inning with the game tied 4-4 but was only able to pitch to one hitter before the game was sent into its second rain delay of the evening. In that at-bat, Santana got Tigers right fielder Zach McKinstry to fly out to center.

The 6-foot-2 right-hander holds a 1.72 ERA in 31⅓ innings of work this season across 32 appearances.

The Pirates started their three-game weekend series against the Texas Rangers 15½ games back of the Chicago Cubs in the NL Central.

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It is a strong likelihood that NBA referee Scott Foster will officiate Game 7 of the NBA Finals between the Indiana Pacers and Oklahoma City Thunder Sunday, June 22.

Foster, who is one of the NBA’s top referees based on a multi-pronged ratings system that uses feedback from teams, called Game 4 in Indianapolis, and Pacers fans were unhappy with his whistle in the Thunder victory.

The NBA does not publicly reveal referees until 9 a.m. ET of game day, but given the rotation of the Finals refs, it makes sense that Foster would get the assignment since he has reffed just one 2025 Finals game and hasn’t been in the rotation since Game 4.

Pacers coach Rick Carlisle defended Foster at media availability before Game 5.

“I think it’s awful some of the things I’ve seen about officiating, and Scott Foster in particular,” Carlisle said on Sunday, June 15. “I’ve known Scott Foster for 30 years. He is a great official. He has done a great job in these playoffs. We’ve had him a lot of times. The ridiculous scrutiny that is being thrown out there is terrible and unfair and unjust and stupid.”

Before the Finals began, the NBA announced the 12 referees who were selected to officiate Finals games based on evaluations from playoff games this season.

Not every ref will get two games, but it won’t be a surprise if Foster gets Game 7.

Foster is working his 18th Finals and has reffed 25 Finals games, including Game 7 in the 2010 Finals between the Boston Celtics and Los Angeles Lakers and Game 7 of the 2013 Finals between the Miami Heat and San Antonio Spurs.

James Capers, Tyler Ford, Ben Taylor, Josh Tiven and Sean Wright are the other officials who have had just one Finals games this season. A crew of Foster plus a combination of Capers, Tiven and Williams makes sense. Ford and Taylor called their first Finals games this month.

In Game 4, both teams combined to shoot 71 free throws, including 38 by the Thunder. On the NBA’s Last Two-Minute Report, referee operations examined 17 plays and found they were all “correct calls” or “correct no-calls.”

Foster had reffed one previous Pacers playoff game this season.

Some fans have given Foster the nickname “The Extender,” claiming that he has a history of making dubious calls during the playoffs that have extended series.

Longtime NBA writer Tom Haberstroh, however, referenced a study that says there’s “not much evidence at all” of Foster’s ability to ‘extend’ the series.

How are NBA Finals referees selected?

According to the NBA, playoff referees are selected, “based on their overall performance throughout the first three rounds of the NBA Playoffs 2025. Officials were evaluated by the NBA Referee Operations management team after each round to determine advancement in this year’s postseason.”

Who is NBA referee Scott Foster?

Foster is considered one of the best referees in the league.

An official in his 30th season with the NBA, Foster entered this season having officiated 1,675 regular season games and 241 postseason games. Friday night was Foster’s 25th time officiating an NBA Finals game. This is his 18th NBA Finals, overall..

Foster is also a noted pickleball player.

This post appeared first on USA TODAY

The latest first has come to the current era of college football, with name, image and likeness (NIL) reigning supreme.

Wisconsin football and its NIL collective filed a complaint in state court on June 20 against Miami over alleged recruiting interference, according to a report from Yahoo Sports’ Ross Dellenger. The move is the first of its kind and a potentially precedent-setting action.

The situation revolves around former Wisconsin defensive backXavier Lucas, with the school claiming that Miami interfered with Lucas’ revenue-binding contract with the Badgers and their NIL collective. Lucas left Wisconsin for Miami in January.

Lucas notably transferred to Miami without entering his name in the transfer portal, according to numerous reports in January. Lucas had announced his intention to enter the portal in December, but Wisconsin reportedly refused to put his name in the portal after he had already signed a contract with the school.

The documents obtained by Yahoo Sports claims Miami communicated with Lucas despite knowing the defensive back had already signed a contract with Wisconsin.

“Miami interfered with UW-Madison’s relationship with Student-Athlete A (Lucas) by making impermissible contact with him and engaging in tampering,” the suit writes, according to Yahoo Sports

“We stand by our position that respecting and enforcing contractual obligations is essential to maintaining a level playing field,” Wisconsin said in a statement to Yahoo Sports. “In addition to our legal action, we will continue to be proactive to protect the interests of our student-athletes, our program and the broader collegiate athletics community.”

Dellenger also reported the Big Ten support Wisconsin on the matter.

Revenue sharing was approved in a House settlement on June 6, allowing for schools to directly pay athletes across all sports. The Wisconsin-Miami case could serve precedent for future situations of alleged or potential tampering.

Lucas finished his freshman season at Wisconsin with 18 total tackles, a sack and an interception. The 6-foot-2 defensive back from Pompano Beach, Florida, withdrew from classes at Wisconsin and enrolled at Miami as a student in order to skirt the NCAA transfer rules regarding enter your name in the transfer portal during the two separate portal windows.

Lucas reportedly signed a two-year revenue sharing contract with Wisconsin, according to Yahoo Sports. The contract binds the player’s non-exclusive rights to the school, allowing it to market their NIL. The contract forbids the player’s NIL rights to be used by other schools.

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Canelo Alvarez and Terence Crawford met Fridaym June 20 in Saudi Arabia for a press conference to promote their megafight, scheduled for Sept. 13 in Las Vegas. But a Saudi powerbroker spoke first.

He is Turki Alalshikh (a.k.a. “His Excellency”), the central figure in Saudi Arabia becoming a big player in professional boxing as a deep-pocketed promoter.

“I hate Tom and Jerry’s kind of boxing,’ Alalshikh said, referring to the famous animated series as well as boxers who run from their opponents. ‘I am sure (Alvarez and Crawford) will deliver for me smashing face and blood and this is the boxing.’

Additionally, Alalshikh said, ‘We will have in this fight and our next fight’s a bonus for a KO.’

He did not provide specifics, but his message was clear. Alvarez and Crawford will be expected to deliver, despite recent history.

Alvarez (63-2-2, 39 KOs) is coming off a lackluster victory over William Scull by unanimous decision in May. The crowd booed as Scull spent most of the fight running from Alvarez, who exerted modest effort to chase down Scull. It also happened to be the first fight of Alvarez’s five-fight deal with the Saudis.

Crawford (41-0, 31 KOs) has not fought since August 2024, and that was an unforgettable bout, too. He beat Israil Madrimov by unanimous decision. Like Alvarez, he heard boos during a fight that included no knockdowns.

Alalshikh suggested he didn’t want a 12-by-12 ring to ensure adequate action for the fight. But apparently he thought it would be a good idea to have dinner with Alvarez and Crawford before the press conference.

“We talked yesterday and they are professional,’’ Alalshikh said later in the press conference. “But I think starting from last night they know what they need to do.’

Do Alvarez, Crawford get it?

Neither Alvarez or Crawford sounded as if Alalshikh’s words will have great impact when they fight at Allegiant Stadium, home of the Las Vegas Raiders, for the undisputed super middleweight championship.

Crawford, 37, is moving up two weight classes (14 pounds) to fight Alvarez at super middleweight. His standing toe-to-toe with Alvarez would enthrall the fans and perhaps create the fight that Alalshikh wants. But don’t count on it.

“I’m not going to let somebody else force or tell me how to fight,’’ Crawford said. “When I’ve been in fighting my whole life, I won’t be running. I could tell you that, but I will be doing a lot of touching.’’

 In defense of Crawford, before the fight against Madrimov, he’d won 11 straight fights by knockout.

Alvarez, 34, suggested his fight would be one for the history books. But it’s worth revisiting recent history – his fight against Scull. It was a dreadful fight.

“…but we win,’’ Alvarez said. “That’s all that matters.’’

If Alvarez had been listening, at the dinner or at the press conference, he’d know that’s not all that matters to Alalshikh – or, largely speaking, boxing fans.

Alvarez’s next knockout will be his first since 2021 – when he finished Caleb Plant with an 11th-round TKO.

Maybe it’s something “His Excellency’’ will address during another dinner with Alvarez and Crawford.

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One day after Department of Homeland Security officers infringed upon their home amid nearly two weeks of heightened tension in Los Angeles, the Dodgers on Friday announced a $1 million ‘commitment’ toward financial assistance for families of immigrants ‘impacted by recent events in the region.’

Los Angeles has been roiled by aggressive raids from Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), which have honed in on workplaces frequented by immigrants. Marines and the National Guard have been dispatched to Los Angeles in the wake of protests that have seen heavy use of tear gas and projectile weapons by law enforcement.

Meanwhile, the Dodgers have been heavily criticized for both action and inaction from their heavily Latino fan base. Manager Dave Roberts stated he didn’t have enough information to opine on the situation, and the club came under more scrutiny after R&B singer Nezza sang the national anthem in Spanish at Dodger Stadium, and posted videos and correspondence showing it was against the Dodgers’ wishes.

Veteran utilityman Kiké Hernández posted a message of support on Instagram, and in the days following the club indicated it would soon show support for the area’s immigrant population.

Then came Thursday’s caravan of DHS vans and vehicles to the Dodger Stadium gate, where they apparently hoped to use the grounds for staging. Protestors arrived and DHS officials were eventually escorted out a separate exit by the Los Angeles Police Department. But many remained and turned their grievances toward the Dodgers for staying largely neutral at a time the community was reeling.

The Dodgers’ statement nodded non-specifically toward events in the area while not referencing ICE, DHS or other outside forces.

‘What’s happening in Los Angeles has reverberated among thousands upon thousands of people, and we have heard the calls for us to take a leading role on behalf of those affected,” said Dodgers president Stan Kasten, whose club generated an estimated $752 million in revenue last season and is valued at nearly $7 billion. “We believe that by committing resources and taking action, we will continue to support and uplift the communities of Greater Los Angeles.”

Mayor Karen Bass indicated the external infringement on the community has had an impact.

“These last weeks have sent shockwaves of fear rippling through every neighborhood and have had a direct impact on our economy,’ Bass said.

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Apple has plans to make a folding iPhone starting next year, reliable analyst Ming-Chi Kuo said on Wednesday.

Kuo said Apple’s folding phone could have a display made by Samsung Display, which is planning to produce as many as eight million foldable panels for the device next year. However, other components haven’t been finalized, including the device’s hinge, Kuo wrote. He expects it to have “premium pricing.”

Kuo is an analyst for TF International Securities, and focuses on the Asian electronics supply chain and often discusses Apple products before they’re launched.

He wrote in a post on social media site X that Apple’s plans for the foldable iPhone aren’t locked in yet and are subject to change. Apple did not respond to CNBC’s request for comment.

Apple’s iPhone makes up over half of Apple’s business and remains an incredibly profitable product, accounting for $201 billion in sales in the company’s fiscal 2024. But iPhone revenue peaked in 2022, and Apple is constantly looking for ways to attract new customers and convince its current customers to upgrade to more expensive devices.

Several of Apple’s rivals, including Huawei and Samsung, have been releasing folding smartphones since 2019.

The devices promise the screen size of a tablet in a format that can be stored in pants pockets. But folding phones still have hardware issues, including creases in the display where it is folded.

Folding phones also have yet to prove they drive significant demand after the novelty wears off.

Research firm TrendForce said last year that only 1.5% of all smartphones sold can fold. Counterpoint, another research firm tracking smartphone sales, said earlier this year that the folding market only grew about 3% in 2024 and is expected to shrink in 2025.

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Crude oil futures rose more than 1% on Thursday, after Prime Minister Benjamin Netanyahu ordered Israel’s military to intensify attacks against Iran.

U.S. crude oil was last up $1.36, or 1.81%, to $76.50 per barrel by 9:38 a.m. ET, while global benchmark Brent added $1.10, or 1.43%, to $77.80 per barrel. Prices have gained more than 11% over the seven days since Israel began pounding Iran’s nuclear and missile programs.

Follow along for live coverage

Netanyahu ordered Israel’s military to intensify attacks on “strategic targets” in Iran and “government targets” in the country’s capital, Tehran, Israel Defense Minister Israel Katz said in a social media post. The goal of the strikes is to “undermine the ayatollah’s regime,” Katz said.

Israel’s decision to escalate its military operation against the Islamic Republic comes after an Iranian missile reportedly struck a major hospital in the southern city of Beersheba. Katz threatened Iran’s leader Ayatollah Ali Khamenei in the wake of the hospital strike.

Katz said Israel’s military “has been instructed and knows that in order to achieve all of its goals, this man absolutely should not continue to exist,” referring to Khamenei.

President Donald Trump is still considering whether to order a U.S. strike on Iran’s nuclear program. “I may do it, I may not do it, I mean nobody knows what I’m going to do,” Trump told reporters Wednesday.

JPMorgan warned on Wednesday that regime change in a major oil producing country like Iran could have a profound impact on global oil prices. Iran is one of the top producers in OPEC.

“If history serves as a guide, further destabilization of Iran could lead to significantly higher oil prices sustained over extended periods,” Natasha Kaneva, head of global commodities research at JPMorgan, told clients in a note.

Supply losses in the wake of a regime change “are challenging to recover quickly, further supporting elevated prices,” Kaneva said.

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Tesla has inked its first deal to build a grid-scale battery power plant in China amid a strained trading relationship between Beijing and Washington.

The U.S. company posted on the Chinese social media service Weibo that the project would be the largest of its kind in China when completed.

Utility-scale battery energy storage systems help electricity grids keep supply and demand in balance. They are increasingly needed to bridge the supply-demand mismatch caused by intermittent energy sources such as solar and wind.

Chinese media outlet Yicai first reported that the deal, worth 4 billion yuan ($556 million), had been signed by Tesla, the local government of Shanghai and financing firm China Kangfu International Leasing, according to the Reuters news agency.

Tesla said its battery factory in Shanghai had produced more than 100 Megapacks — the battery designed for utility-scale deployment — in the first quarter of this year. One Megapack can provide up to 1 megawatt of power for four hours.

“The grid-side energy storage power station is a ‘smart regulator’ for urban electricity, which can flexibly adjust grid resources,” Tesla said on Weibo, according to a Google translation.

This would “effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city,” it added. “After completion, this project is expected to become the largest grid-side energy storage project in China.”

According to the company’s website, each Megapack retails for just under $1 million in the U.S. Pricing for China was unavailable.

The deal is significant for Tesla, as China’s CATL and carmaker BYD compete with similar products. The two Chinese companies have made significant inroads in battery development and manufacturing, with the former holding about 40% of the global market share.

CATL was also expected to supply battery cells and packs that are used in Tesla’s Megapacks, according to a Reuters news source.

Tesla’s deal with a Chinese local authority is also significant as it comes after U.S. President Donald Trump slapped tariffs on imports from China, straining the geopolitical relationship between the world’s two largest economies.

Tesla Chief Executive Elon Musk was also a close ally of President Trump during the initial stages of the trade war, further complicating the business outlook for U.S. automakers in China.

The demand for grid-scale battery installation, however, is significant in China. In May last year, Beijing set a new target to add nearly 5 gigawatts of battery-powered electricity supply by the end of 2025, bringing the total capacity to 40 gigawatts.

Tesla has also been exporting its Megapacks to Europe and Asia from its Shanghai plant to meet global demand.

Capacity for global battery energy storage systems rose 42 gigawatts in 2023, nearly doubling the total increase in capacity observed in the previous year, according to the International Energy Agency.

— CNBC’s Arjun Kharpal contributed reporting.

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