Saudi Arabia makes a major move! U.S.: Non-essential personnel to evacuate! Iran's Supreme Leader to deliver a speech soon

Iran Situation: New Developments!

On the evening of March 9, the latest news reports that with the near blockade of the Strait of Hormuz, oil storage tanks are gradually filling up, and Saudi Arabia, the world’s largest oil exporter, has begun to cut oil production. This move by Saudi Arabia follows the actions of the UAE, Kuwait, and Iraq.

According to Xinhua News Agency, the U.S. Embassy in Saudi Arabia issued a statement on the 9th saying that due to security risks, the U.S. State Department has requested non-essential government personnel to evacuate Saudi Arabia.

Iranian Parliament Speaker Ali Larijani stated on the 9th that if the current conflict further escalates to infrastructure, its economic impact will persist in the region and globally for a long time. He indicated that under such circumstances, international oil prices could remain in triple digits for some time.

Additionally, according to reports from Xinhua citing Iranian media, Iran’s Supreme Leader Ayatollah Khamenei will deliver his first speech to the Iranian public within hours.

Saudi Arabia Begins Oil Production Cuts

Reuters reported on March 9 that with the near blockade of the Strait of Hormuz, leading to the gradual filling of oil tanks, Saudi Arabia has started reducing oil output.

As the world’s largest oil exporter, Saudi Arabia’s move follows those of the UAE, Kuwait, and Iraq. The Middle East conflict has effectively halted the Strait of Hormuz, which connects the Persian Gulf to the open sea, with Iran’s threats to shipping causing maritime traffic paralysis. This blockage has cut off major oil exports, sharply increasing oil prices and triggering a chain reaction in the global economy.

Saudi Arabia’s daily oil production is about 10 million barrels, with exports around 7 million barrels. Saudi Aramco has rerouted some exports from the usual Strait of Hormuz route to the Red Sea port of Yanbu. However, the pipeline capacity is insufficient to handle all the original export volume.

Reports also indicate that because the Strait of Hormuz is effectively blocked and tankers are stranded, crude oil is being rerouted via the Red Sea. Saudi Aramco has issued a series of rare tenders offering immediate delivery of crude oil.

Sources familiar with the trading say that Saudi Aramco has offered three grades of crude: Arab super light, Arab heavy, and its flagship Arab light crude. These anonymous traders report that the company has recently released about 4.6 million barrels of these grades.

This spot tender reflects market pressure. Saudi producers cannot sell oil through traditional Persian Gulf channels, and the country usually supplies crude via long-term contracts. But now, Saudi Arabia is transporting record volumes of crude through pipelines to Yanbu.

Traders note that the prices of the crude oils in this tender are at a premium over the official March prices, which were set a month ago before the current Middle East conflict erupted.

Ship tracking data shows that so far this month, oil shipments from Saudi Arabia’s western ports have surged to about 2.3 million barrels per day, roughly 50% higher than any single month since late 2016.

To date, no Saudi crude has been shipped through the Strait of Hormuz. The last vessel to pass through was the “New Vision” on the night of February 28.

On March 9, during trading, WTI crude futures surged over 30%, reaching a high of $119.48 per barrel; Brent crude rose nearly 29%, reaching a high of $119.50 per barrel. As of the time of writing, WTI and Brent are up 13.53% and 13.40%, respectively, at $103.20 and $105.11 per barrel.

Notably, the premium of the recent Brent futures contract over the six-month forward contract has exceeded $36, a record high, indicating supply tightness caused by the Iran conflict.

According to the U.S. Embassy in Saudi Arabia, the statement on the 9th said that due to security risks, the U.S. State Department has requested non-essential government personnel to evacuate Saudi Arabia.

The statement advised remaining essential staff to continue working from home, avoid visiting the U.S. embassy and consulate in Dhahran, and recommended U.S. citizens consider commercial flights to leave Saudi Arabia. Those who choose not to evacuate should stay in safe locations, stock necessary supplies, stay indoors, and avoid windows.

On the night of the 3rd, U.S. time, the State Department issued an evacuation order for non-essential government personnel and their families in Saudi Arabia.

Iran Claims to ‘Destroy’ U.S. Military Helicopter Base in Kuwait

According to Xinhua, the Iranian Islamic Revolutionary Guard Corps (IRGC) issued a statement on the 9th saying that early that morning, the IRGC Navy used multiple drones and cruise missiles to attack and “destroy” a U.S. helicopter base in Udayri, Kuwait. The statement said the operation was “extremely critical,” destroying fuel tanks, helicopter pads, and other logistical and support facilities.

U.S. officials reported on the 8th that U.S. Defense Secretary Lloyd Austin claimed that military strikes against Iran “have just begun.”

Austin stated that the U.S. and Israel have overwhelming military advantages over Iran and are executing planned strikes. He said that with air superiority, they can use more conventional munitions, including heavy bombs, to attack, and that they have not yet fully engaged in such operations.

On the 9th, an Iranian military source said Iran has shot down over 82 U.S.-Israeli drones and four F-15 fighters, and destroyed multiple radar facilities.

The source added that after systems were damaged, U.S. and Israeli tactics shifted from targeted military actions to actions aimed at creating panic, sometimes using high-cost weapons to attack targets of limited value.

Xinhua also reports that Iran’s Foreign Ministry spokesperson Bagheri Kian on the 9th said that U.S. energy plundering is no secret, and Iran will do its best to defend national sovereignty.

Regarding U.S. military actions against Iran, Bagheri said that as long as the attacks continue, “there is no room for dialogue besides defense and heavy strikes against the enemy.”

On relations with neighboring countries, he stated that Iran’s actions are not aimed at enemies in the region but are “conditional self-defense.”

Putin Congratulates Mullah Khamenei on Election as Iran’s Supreme Leader

According to Xinhua, Russian President Vladimir Putin sent a congratulatory message on March 9 to Ayatollah Ali Khamenei, congratulating him on being elected Iran’s Supreme Leader and reaffirming Russia’s continued firm support for Iran.

The Kremlin website quoted Putin as saying that Russia will continue to support Iran and stay united with Iran. “Russia has been, is, and will remain a reliable partner of Iran.”

Putin also said that in the face of “armed invasion,” Khamenei’s election as Iran’s Supreme Leader requires great courage and dedication. Russia believes Khamenei will inherit his father’s legacy and unite the Iranian people to overcome difficulties.

Several U.S. media outlets reported on the 6th that since the U.S. and Israel launched large-scale military operations against Iran, Russia has been providing Iran with intelligence on U.S. troop deployments in the Middle East, including positions and movements of personnel, ships, and aircraft.

(Source: Securities Times)