Iran Responds to Trump's Threats Over Oil Infrastructure
Iran's Reaction to U.S. Oil Pipeline Threats
Tehran: Iran has once again ridiculed the United States following Donald Trump's warning regarding potential explosions of Tehran's oil pipelines if a ceasefire agreement was not reached. In a post on X, Iran's Parliament Speaker, MB Ghalibaf, pointed out that despite Trump's threats, no oil wells had exploded. He cautioned that a blockade in the Strait of Hormuz could lead to oil prices soaring to USD 140 per barrel. Ghalibaf criticized the Trump administration for receiving what he termed "junk" advice from U.S. Treasury Secretary Scott Bessent, suggesting that the blockade in this vital waterway was misguided. The Strait of Hormuz is crucial, accounting for 20% of the global trade in crude oil and liquefied natural gas (LNG) prior to the onset of the Iran war on February 28. Ghalibaf remarked, "Three days in, no well exploded. We could extend to 30 and livestream the well here. That was the kind of junk advice the U.S. administration gets from people like Bessent who also push the blockade theory and cranked oil up to $120+. Next stop: 140. The issue isn’t the theory, it’s the mindset," he stated in his post.
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Trump's Warning: On April 26, Trump asserted that Iran’s oil infrastructure could face explosions within three days due to mechanical failures stemming from the U.S. blockade on its vessels in the strait. He explained to Fox News, "When you have, you know, lines of vast amounts of oil pouring through your system, if for any reason that line is closed because you can’t continue to put it into containers or ships, which has happened to them — they have no ships because of the blockade — what happens is that line explodes from within, both mechanically and in the earth." Oil Prices Surge Over $119: Oil prices surged to their highest levels since 2022 on April 30, with Brent crude for June delivery rising 7.3% to USD 119.34 a barrel by 1:15 PM Eastern Time, after reaching an intraday peak of USD 119.76. Brent crude for July delivery, which is experiencing more active trading, increased by 6.6% to USD 111.27 a barrel, as reported. This rally has resulted in Brent prices climbing over 10% this week. The significant increase in prices coincides with rising tensions between the U.S. and Iran. Trump has indicated that Washington may persist with its blockade of Iranian vessels, further limiting Tehran’s oil exports. In retaliation, Iran has kept the Strait of Hormuz closed to other oil tankers, causing disruptions in global crude shipments.