Washington: Iranian Parliament Speaker Mohammad Bagher Ghalibaf has cautioned US Treasury Secretary Scott Bessent about rapidly declining strategic oil reserves and increasing US Treasury yields, placing him and the Trump administration in a challenging position. In a bold statement on X, Ghalibaf provocatively urged Bessent to take decisive actions to avert potential career consequences, stating, "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 :)"

According to Islamic Republic News Agency, Ghalibaf's comments arrive at a time of mounting pressure on the US administration over the performance of the Treasury and energy markets. Bessent has been conducting buyback operations in the US Treasury market, particularly focusing on 10-year bonds, to lower long-term yields and reduce borrowing costs ahead of the midterm elections. However, these interventions have faced resistance from the bond market, with yields staying high or even increasing. Critics, including veteran Wall Street figures like Stanley Druckenmiller, have expressed skepticism about the efficacy of these measures and have warned of escalating market risks.

The US has been heavily tapping into its Strategic Petroleum Reserve (SPR) amid ongoing conflicts with Iran and disruptions in the Strait of Hormuz. The SPR, stored in vast underground salt caverns in Texas and Louisiana, has plummeted to its lowest levels since the early 1980s. Bryan Mound, situated near the Texas coast, is a critical storage site for the reserve.

There are growing concerns over the structural risks associated with excessive withdrawals from these salt caverns, including changes in pressure, stability of salt walls, well integrity, and potential damage to long-term storage capability. Some oil traders have interpreted Bessent's actions as potentially driving futures prices lower. Nonetheless, Oman and UAE oil futures, which serve as key indicators of market expectations concerning oil flows through the Strait of Hormuz, have surged past $100 in recent days.