Iran strikes Kuwait’s oil infrastructure before Opec+ supply talks | Oil
Iranian drones have hit Kuwait’s oil infrastructure, causing “serious material damage” that threatens to further disrupt oil supplies already hit by the US-Israeli war against Iran.
Sunday’s drone strikes came hours before members of OPEC+, a group of leading global oil suppliers, were to meet to discuss how they could boost production despite Iran effectively blocking the Strait of Hormuz shipping route.
Iran’s Islamic Revolutionary Guard Corps said it attacked petrochemical facilities in the United Arab Emirates and Bahrain, as well as in Kuwait. Kuwait Oil Company reported damage and fire at its subsidiaries. The fires broke out after a separate drone strike at the Shuwaikh oil sector complex, where the oil ministry and KPC headquarters are located, the company said.
It was reported that Iranian drones also hit an office complex belonging to the ministries of the Kuwaiti government, causing serious damage but no loss of life, while local media reported that two electricity and water desalination plants were attacked.
Iran’s central military command, meanwhile, rejected an ultimatum from Donald Trump, who threatened to destroy vital Iranian infrastructure if Tehran did not agree to a peace deal within 48 hours. According to Iranian media reports, at least five people were killed in an Israeli attack on Iran’s petrochemical facilities on Saturday.
The drone strikes on Kuwait are the latest blow to the Middle East’s oil infrastructure since the US and Israel launched a war against Iran at the end of February. An Israeli attack in mid-March on a production facility at Iran’s largest gas field in South Pars prompted Tehran to retaliate, which later hit Qatar’s Ras Laffan industrial complex. This comes days after drones hit oil storage facilities in Oman’s port of Salalah.
Repairing energy facilities damaged in recent attacks will be costly and take a long time, potentially negatively affecting global oil supplies in the future, Opec+ members said on Sunday. They also emphasized the “critical importance of protecting international sea lanes to ensure uninterrupted energy flows.”
The group, made up of OPEC members and other oil-producing countries, reportedly agreed in principle to increase production by 206,000 barrels per day in May, according to Reuters. But the agreement remains largely symbolic as Iran continues to effectively block the Strait of Hormuz.
The Bosphorus is a vital trade artery through which around 100 tankers usually pass each day. About 20% of the world’s total crude oil passes through narrow waterways, and Iran’s blockade severely restricts distribution.
The conflict caused the largest disruption in oil supplies in history.
The price of Brent crude oil has risen more than 50 percent since the beginning of the year in response to the war, reaching a peak of $119.50 per barrel in March. It is currently trading at $109 per barrel.
This has increased energy costs for consumers, including in the UK and US, where motorists have been hit hard.
According to the RAC, the average price of a liter of unleaded petrol in the UK on Sunday was 154.45 pence, while the average price of diesel was 185.23 pence.
Just before the start of the Iran war, the average price of a liter of gasoline was 132.83 pence, while the price of diesel was 142.38 pence.
Last week average U.S. fuel prices surpassed $4 per gallon for the first time in four years, and on Sunday the national average was $4,110.
At their last meeting on March 1, OPEC+ members agreed to increase production by an additional 206,000 barrels per day throughout April in response to the Iran war. The last meeting shows that they will be ready to increase production again when tankers are allowed to pass safely through the Bosphorus.
