Oil surges, futures fall as Trump ratchets up threats against Iran
Iran’s attacks on major energy infrastructure continued over the weekend. Bahrain’s BAPCO oil refinery And Headquarters of Kuwait’s state-owned Kuwait Oil Company.
Kuwait also reported attacks some of the country’s electricity and desalination plants.
An account reportedly close to Iran’s parliamentary speaker, Mohammed Bagher Galibaf (a former Revolutionary Guard general who has become a leading voice within the Iranian regime), wrote in a post to X on Saturday that if Iran “does not receive a credible signal by tomorrow that Trump will reconsider an attack on Iran’s infrastructure, Iran preventively, irreversibly and on a large scale Saudi electricity and oil production infrastructure, as well as the infrastructure of the Israeli regime.”
“Iran has so far refrained from using this option to avoid engaging in an ‘irreversible infrastructure war’ and ‘Ukrainization of the region’, but this restriction will expire in the next 24 hours,” the account wrote.
At the same time, oil market observers digested signs of a possible partial resumption of oil flows through the Strait of Hormuz, the world’s most critical oil choke point.
Early Sunday morning, the Omani foreign ministry announced that its leaders had met with the Iranian foreign ministry on Saturday and said:Possible options to ensure smooth flow of transit through the Strait of Hormuz “Under the conditions that currently prevail in the region.”
Also on Saturday, Iran’s military leadership said Iraqi ships would be allowed to pass through the Strait of Hormuz, potentially Approximately 3 million barrels of oil per day return to the market.
The semi-official state-run Iran Mehr News Agency quoted the Iranian president’s office as saying: “Strait of Hormuz will be opened “When damages resulting from war are covered by transit fee revenues.”
The Organization of the Petroleum Exporting Countries (OPEC+) reached the agreement on Sunday. Increased monthly production quota by 206,000 barrels per day in MayIt’s the same increase that cartel member countries agreed on for April.
