All eyes are on ASX uranium shares today as the commodity's spot price continues to rise amid a new international deal for nuclear-powered submarines.
The price of uranium – a commodity needed to fuel nuclear reactors – has been soaring in recent weeks.
According to data from CNBC, the price of uranium has gained more than 60% since this time last month.
As a result, ASX uranium stocks including Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN), and Energy Resources of Australia Limited (ASX: ERA), are on watch today.
What's causing the price of uranium to surge?
The price of uranium has been soaring in recent weeks, driving up the share prices of many ASX uranium shares.
S&P Global Platts reports the price of uranium is being driven higher by funds, investors, and producers increasing their holdings in the commodity.
The publication noted some partakers in uranium-buying believe there's a lack of supply. It also states some investors are enthused by nuclear's potential as an energy source in the age of climate change.
The increased prices, demand, and funds' buying the material to hold will likely bolster uranium production. It would also be good news for ASX uranium fans.
Additionally, ASX uranium enthusiasts' interest may be peaked by a new pact between Australia, the United States, and the United Kingdom. The security partnership, named AUKUS, aims to see nuclear-powered submarines navigating Australian waters.
As ABC News has reported today, under the AUKUS pact, Australia's submarines and their diesel-electric motors will be replaced with nuclear-powered counterparts.
The United Kingdom's Prime Minister, Boris Johnson, was clear in saying the submarines will not be equipped with nuclear weapons.
The talk of nuclear power in Australia might boost investors' sentiment of the uranium sector today. However, no companies have announced their involvement in the new submarines.
How are ASX uranium shares performing lately?
So far, the Deep Yellow share price has gained a massive 88% over the last 30 days.
Paladin's stock is besting that figure, boasting a 113% gain for the same period.
Finally, the Energy Resources of Australia share price is currently 70% higher than it was this time last month.
