Why USA Rare Earth (USAR) fell 5.54%
USA Rare Earth (USAR) fell 5.54% on August 13, 2026 — Rare earths tumble in commodities rout.
What happened
USA Rare Earth fell 5.5% alongside a broad commodities selloff triggered by Trump's geopolitical rhetoric on the Strait of Hormuz, which spooked risk sentiment and energy-linked sectors.
Why it moved
Rare earth prices are sensitive to macro risk sentiment and energy costs; Trump's assertion of US control over a critical chokepoint signaled escalating geopolitical tensions, causing a flight from commodities and…
Why it matters
Within Industrial Metals, rare earths are caught in the crossfire as China's slowdown and macro headwinds have already stalled the electrification cycle — geopolitical noise and energy volatility add fresh downside…
What would break the thesis
If geopolitical tensions de-escalate or energy stabilizes, rare earths could recover; a fresh demand impulse from EV or defense spending would restart the cycle, but near-term sentiment remains fragile.