Tehran: Iranian Parliament Speaker Mohammad Bagher Ghalibaf has issued a stark warning to US Treasury Secretary Scott Bessent, highlighting the challenges posed by declining strategic oil reserves, increasing US Treasury yields, and surging oil futures prices. Ghalibaf's remarks suggest that these factors have placed both Bessent and the Trump administration in a precarious situation.

According to Islamic Republic News Agency, Ghalibaf's message to Bessent was delivered via a post on the social media platform X, where he emphasized the urgency of the situation. Ghalibaf's post read, 'Short harder, champ. Like your career depends on it (because it does). Or drain below the danger zone and watch your caverns collapse (along with your career). Or pray to the salt gods of Bryan Mound. The world's already got its popcorn :)'

The warning comes amid heightened scrutiny of the US administration's handling of Treasury and energy markets. Bessent has been actively engaged in buyback operations within the US Treasury market, focusing on 10-year bonds to mitigate long-term yields and decrease borrowing expenses ahead of the midterm elections. Despite these efforts, the bond market has not responded as anticipated, with yields either remaining high or rising further. This has drawn criticism from seasoned Wall Street figures such as Stanley Druckenmiller, who have questioned the effectiveness of Bessent's strategies and cautioned about increasing market risks.

Compounding these issues, the United States has been depleting its Strategic Petroleum Reserve (SPR) due to ongoing conflict with Iran and disruptions in the Strait of Hormuz. The SPR, primarily stored in salt caverns in Texas and Louisiana, has reached its lowest levels since the early 1980s, with Bryan Mound being one of the key storage sites. This has raised concerns regarding the structural integrity of the storage facilities, including potential risks to salt-wall stability, well integrity, and the long-term storage capacity due to excessive withdrawals.

In the oil market, traders have viewed Bessent's actions as potentially indicative of US efforts to drive futures prices lower. However, oil futures from Oman and the UAE, seen as significant indicators of market expectations surrounding oil flows through the Strait of Hormuz, have surged above $100 in recent days, signaling ongoing market volatility.