US Strategic Petroleum Reserve at lowest since initial fill-up in July 1983; total US supplies of crude oil and petroleum products, including the SPR, are the lowest since March 2004; highest June refinery utilization rate since 2018, refinery throughput at a 10 month high….
US oil prices finished lower for the fourth time in five weeks after the US and Iran signed a memorandum of understanding to negotiate an end to their war and end their respective blockades of oil shipments through the Strait of Hormuz…after falling 6.3% to $84.88 a barrel last week after Trump suspended his planned strikes on Iranian infrastructure and announced that a peace deal would be signed shortly, the contract price for the benchmark US light sweet crude for July delivery gapped lower in off-market trading on Sunday evening following the news of an initial deal to end the US war on Iran and resume traffic through the Strait of Hormuz, then fell more than 4% on Asian markets on Monday after the United States and Iran reached an interim peace agreement aimed at ending months of conflict in the Middle East and reopening the Strait of Hormuz, and was down more than 5% across global markets after Pakistan’s Prime Minister Sharif said the two sides had declared an immediate and permanent termination of military operations, while Iran’s deputy foreign minister confirmed the initial agreement, and slumped to their lowest since early March Monday morning in New York after President Trump on Sunday said that a deal with Iran was "now complete" and announced a reopening of the Strait of Hormuz as well as the immediate lifting of the U.S. blockade on Iranian maritime trade, and settled $4.13 lower at $80.75 a barrel after Iran's Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements…oil prices fell by another 4% across global markets on Tuesday, as markets evaluated the outlook for resuming oil shipments through the Strait of Hormuz, weak physical demand, and the lack of clear details surrounding the initial agreement to end the war with Iran, and extended their decline from the previous session during New York trading on growing signs that shut-in Middle Eastern oil flows might soon return, and settled $4.70 lower at $76.05 a barrel, further pressured by a Wall Street Journal report stating that the U.S.-Iran deal allows Iran to immediately resume its oil sales once the agreement is signed later in the week…oil prices extended their losses during Asian trading on Wednesday, as traders weighed the prospect of increased global supply following the U.S.-Iran peace agreement, but rose from three-month lows on Wednesday morning in New York in anticipation that the U.S. EIA would report another substantial weekly crude draw from inventory, then rallied to over $77 after the EIA report showed the Strategic Petroleum Reserve saw yet another massive drawdown, and that supplies at the Cushing OK depot were at their lowest for this time of year since 2005. and settled oil 74 cents higher at $76.79 a barrel after President Trump said the new ceasefire agreement with Iran was not final and that the war on Iran could resume if he’s not satisfied…oil prices fell in early trading on global markets on Thursday after the United States and Iran signed a preliminary agreement aimed at ending hostilities and reopening the Strait of Hormuz, then hit their lowest levels since the start of this year's Iran war in New York trading, on the reopening of shipping of oil and gas tankers through the Strait of Hormuz, but partly recovered to settle just 19 cents lower at $76.60 a barrel after U.S. Vice President JD Vance warned Israel against further attacks on Iran-backed Hezbollah in Lebanon, raising doubts about the durability of the U.S.-Iran ceasefire agreement, and thus ended 9.8% lower for the week…while US markets were closed for the Juneteenth National Independence Day holiday on Friday, oil prices rose slightly on Australian and Asian markets on Friday after JD Vance’s warning to Israel clouded the legitimacy of the Iran peace deal, and continued to rise across global markets as hopes for a lasting US–Iran truce faded after peace talks in Switzerland were called off, while Israel stepped up attacks on Lebanon, and finished Friday's trading 69 cents higher at $76.54 a barrel..
meanwhile, natural gas prices finished higher for the first time in three weeks on a smaller than expected addition to storage and on expectations for stronger power sector demand and LNG feedgas demand later this summer….after falling 3.3% to $3.120 per mmBTU last week on a larger than expected inventory increase and mixed weather forecasts, the price of the benchmark natural gas contract for July delivery opened 2.4 cents lower on Monday as markets weighed lower demand and a possible Iran cease fire, but moved up during afternoon trading to settle 2.7 cents higher at $3.147 per mmBTU even as modest price declines across the rest of the futures curve suggested traders remained cautious amid expectations for weaker power demand and rising production….July natural gas slipped to $3.127 within minutes of the opening bell on Tuesday, then trended higher for the rest of the session, despite relatively steady fundamentals; strong production, cooling temperatures, steady LNG, and Iran uncertainty, and settled 9.2 cents higher at $3.239 per mmBTU, as traders began pricing in the risk of simultaneous strength in power sector demand and LNG feedgas consumption later this summer….however, that natural gas contract opened 4.2 cents lower on Wednesday, then traded within a tight band near $3.150 for the balance of the session, as steady production and a bearish short-term forecast limited any rallies, and settled 9.4 cents lower at $3.145 per mmBTU as forecasts pointed to weaker power-sector demand and another near-average storage build, reinforcing expectations that gas supplies would remain above normal heading into summer….natural gas futures hovered near Wednesday’s close in early Thursday trading, as markets awaited direction from the latest weekly government storage data, then advanced into midday as traders digested a lighter-than-expected inventory print from the US EIA, and settled 8.8 cents higher at 3.233 per mmBTU as the storage report extended a season-long trend of injections lagging year-earlier levels, leaving natural gas prices 3.6% higher for the week, even as traders continued to weigh strong production growth against still-comfortable inventories and an uncertain weather outlook…
The EIA’s natural gas storage report for the week ending June 12th indicated that the amount of working natural gas held in underground storage rose by 73 billion cubic feet to 2,759 billion cubic feet by the end of the week, which left our natural gas supplies 29 billion cubic feet, or 1.0% below the 2,788 billion cubic feet of gas that were in storage on June 12th of last year, but 151 billion cubic feet, or 5.8% above the five-year average of 2,535 billion cubic feet of natural gas that had typically been in working storage as of the 12th of June over the most recent five years….the 73 billion cubic foot injection into natural gas storage for the cited week was in line with the 75 billion cubic foot injection into storage that analysts had forecast in a Reuters poll ahead of the report, while somewhat less than the 97 billion cubic foot of gas that were injected into natural gas storage during the corresponding week of 2025, while matching the average 73 billion cubic foot injection into natural gas storage that had been typical for the same early June week over the past five years…
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending June 12th indicated that after a sizable decrease in our oil imports and a notable increase in our refinery demand, we again needed to pull oil out of our stored crude supplies for the eighth consecutive week and for the 30th time in fifty-five weeks, despite a decrease in demand for oil that the EIA could not account for…. Our imports of crude oil fell by an average of 754,000 barrels per day to average 5,134,000 barrels per day, after falling by an average of 509,000 barrels per day during the prior week, while our exports of crude oil fell by an average of 513,000 barrels per day to 4,327,000 barrels per day, which, when used to offset our imports, meant that the net of our trade of oil worked out to an import average of 807,000 barrels of oil per day during the week ending June 12th, an average of 241,000 fewer barrels per day than the net of our imports minus our exports during the prior week... At the same time, transfers to our oil supplies from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils were 91,000 barrels per day lower than the prior week at 391,000 barrels per day, while during the same week, production of crude from US wells was 7,000 barrels per day higher at 13,806,000 barrels per day. Hence, our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 15,004,000 barrels per day during the June 12th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 17,192,000 barrels of crude per day during the week ending June 12th, an average of 230,000 more barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period, the EIA’s surveys indicated that an average of 2,459,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production during the week ending June 12th averaged a rounded 270,000 more barrels per day than what our oil refineries reported they used during the week. To account for the difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ -270,000 ] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus indicating there must have been a error or omission of that magnitude in the week’s oil supply & demand figures that we have just transcribed….Since 536,000 barrels per day of demand for oil could not be accounted for in the prior week’s EIA data, that means there was a 266,000 barrel per day difference between this week’s oil balance sheet error and the EIA’s crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week’s report are somehow off by that much, and therefore not very useful.... However, since most oil traders react to to the figures in these weekly EIA reports as if they were gospel, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil supply, see this EIA explainer….also see this March 2023 twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had once hoped to do about it).
This week’s 2,458,000 barrel per day average decrease in our overall crude oil inventories, the second largest on record, came as an average of 1,180,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while 1,277,000 barrels per day were being pulled out of our Strategic Petroleum Reserve, the twelfth consecutive Iran war related withdrawal from the SPR, including the four largest in SPR history, which left the SPR at 340,251,000 barrels, the lowest since it was initially being filled in July 1983…As the result of those recent draws on the SPR, on commercial supplies, and with total fuel inventories tracking near multi-year lows, our Total Supplies of Crude Oil and Petroleum Products, including the SPR fell to 1,543,113,000 during the week ending June 12th, the lowest since March 12th, 2004….
Further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports fell to 5,658,000 barrels per day last week, which was 7.2% less than the 6,094,000 barrel per day average that we were importing over the same four-week period last year, while the four week average of our exports fell to 4,870,000 barrels per day last week, which was still 22.9% more than the 3,964,000 barrel per day average that we were importing last year year at this time... This week’s crude oil production was reported to be 7,000 barrels per day higher at 13,806,000 barrels per day as the EIA’s estimate of the output from wells in the lower 48 states was 7,000 barrels per day higher at 13,392,000 barrels per day, while Alaska’s oil production was unchanged at 414,000 barrels per day...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 5.4% higher than that of our pre-pandemic production peak, and was also 42.3% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 96.7% of their capacity while processing those 17,192,000 barrels of crude per day during the week ending June 12th, up from 95.3% the prior week and the highest June utilization rate since 2018, as refineries are ramping up to peak summertime production levels….the 17,192,000 barrels of oil per day that were refined that week was the most in 10 months, 2.0% more than the 16,862,000 barrels of crude that were being processed daily during the week ending June 13th of 2025, but were still 0.4% less than the 17,264,000 barrels that were being refined during the pre-pandemic week ending June 14th, 2019, when our refinery utilization rate was at 93.9%, which was still a bit below the pre-pandemic normal utilization rate for this time of year…
With the increase in the amount of oil that was being refined this week, gasoline output from our refineries was also higher, increasing by 356,000 barrels per day to 10,076,000 barrels per day during the week ending June 12th, after our refineries’ gasoline output had increased by 296,000 barrels per day during the prior week... This week’s gasoline production was still 0.3% lower than the 10,104,000 barrels of gasoline that were being produced daily over the week ending June 13th of last year, and 3.3% less than the gasoline production of 10,423,000 barrels per day seen during the prepandemic week ending June 14th, 2019….on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 29,000 barrels per day to 5,175,000 barrels per day, after our distillates output had increased by 24,000 during the prior week. But after four straight production increases before that, our distillates output was 4.0% more than the 4,974 ,000 barrels of distillates that were being produced daily during the week ending June 13th of 2025, while 3.6% less than the 5,371,000 barrels of distillates that were being produced daily during the pre-pandemic week ending June 14th, 2019....
Despite this week’s increase in our gasoline production, our supplies of gasoline in storage at the end of the week fell for the sixteenth time in eighteen weeks, decreasing by 906,000 barrels to 214,235,000 barrels during the week ending June 12th, after our gasoline inventories had increased by 186,000 barrels during the prior week. Our gasoline supplies decreased this week because the amount of gasoline supplied to US users rose by 481,000 barrels per day to 9,212,000 barrels per day, while our exports of gasoline rose by 154,000 barrels per day to 989,000 barrels per day, and while our imports of gasoline rose by 24,000 barrels per day to 738,000 barrels per day… After forty-seven gasoline inventory withdrawals over the past sixty-nine weeks, our gasoline supplies were 6.9% lower than last June 13th’s gasoline inventories of 230,013,000 barrels, and about 6% below the five year average of our gasoline supplies for this time of year…
After this week’s modest decrease in distillates production, our supplies of distillates rose for the seventh time in twenty weeks, increasing by 951,000 barrels to 103,052,000 barrels during the week ending June 12th, after our distillates supplies had decreased by 200,000 barrels during the prior week... Our distillates supplies rose this week because the amount of distillates supplied to US markets, an indicator of domestic demand, fell by 205,000 barrels to 3,659,000 barrels per day, while our imports of distillates fell by 3,000 barrels per day to 127,000 barrels per day, and while our exports of distillates rose by 8,000 barrels per day to 1,507,000 barrels per day... Even after 26 additions to distillates inventories over the past 50 weeks, our distillates supplies at the end of the week were 5.8% lower than the 109,398,000 barrels of distillates that we had in storage on June 13th of 2025, and about 13% below the five year average of our distillates inventories for this time of the year…
Finally, after the decrease in our oil imports and the increase in our refinery demand, our commercial supplies of crude oil in storage fell for the 13th time in twenty-six weeks, and for the 27th time over the past year, decreasing by 8,263,000 barrels over the week, from 426,485,000 barrels on June 5th to 418,222,000 barrels on June 12th, after our commercial crude supplies had decreased by 7,227,000 barrels over the prior week….After this week’s decrease, our commercial crude oil inventories were about 6% below the recent five-year average of commercial oil supplies for this time of year, while they were still about 19% above the average of our available crude oil stocks as of the second weekend of June over the 5 years at the beginning of the past decade, with the difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to increased exports to Europe following the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze-offs, changes in our commercial crude supplies had been less extreme until the onset of the Iran war...However, after falling sharply over the past two months, our commercial crude oil inventories as of this June 12th were 0.6% below the 420,942,000 barrels of oil we had in commercial storage on June 13th of 2025, and were 8.5% less than the 457,105,000 barrels of oil that we had in storage on June 14th of 2024, and 10.5% less than the 467,124,000 barrels of oil we had left in commercial storage on June 9th of 2023…
This Week's Rig Count
The US rig count was up by one over six days ending June 18th, as the count of rigs targeting natural gas was up by one, while both the number of rigs targeting oil and miscellaneous rigs were unchanged…for a quick snapshot of this week's rig count, we are again including below a screenshot of the rig count summary pdf from Baker Hughes...in the table below, the first column shows the active rig count as of June 18th, the second column shows the change in the number of working rigs between last week’s count (June 12th) and this week’s (June 18th) count, the third column shows last week’s June 12th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday of the same week of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was Friday, the 20th of June, 2025…
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again including Ohio data center news here while it's hot..
Ohio Lawmakers Eye Data Center Tax Break Reforms - Democrats and Republicans took another victory lap Tuesday over a major, bipartisan energy law enacted last year. But while the chairs and ranking members of the House and Senate Energy committees sung high praises for that legislation (HB 15), they also maintained strong interest in taking up a high profile data center proposal that recently fizzled.With no plans for the Senate to return until after the general election, however, the immediate pathway for that legislation (HB 646) remains murky. Questions over the data center sales and use tax exemption and nondisclosure agreements remained the focal points during the Mid-Atlantic Conference of Regulatory Utilities Commissioners conference in Columbus. The growing scope of the tax exemption agreements, particularly those awarded to major tech companies like Amazon, Meta and Google during the Kasich Administration, is a top issue for Sen. Kent Smith.The amount of foregone tax revenues through the data center tax break irked the Euclid Democrat and many lawmakers, especially after recent reporting revealed that the state lost out on $1.6 billion — a figure much higher than originally estimated by state officials.“The biannual budget for Ohio is $45 billion, so there’s not a large number of categories that you spend a billion dollars on,” Smith said. “I don’t know if the biggest tech companies in the world should be one of those.”The data center bill, which failed to advance to a Senate floor vote last week, would not eliminate those existing agreements but reduces the maximum exemption granted to data center developers from 100% to 50%.Sen. Brian Chavez, R-Marietta, said data centers could receive the 50% tax break if they brought their own generation or entered into a long-term power purchase agreement.Chavez chairs the Select Committee on Data Centers with Rep. Adam Holmes, R-Nashport. At the event, both said they hope the work of the bicameral panel could lead to legislative action or at least provide more transparency into the surging development of the energy-intensive facilities.“I think 646 is a great opportunity for Ohio,” Chavez said. "It puts a lot of additional protections in place and we’re going to continue on with it.”Given that PJM Interconnection’s capacity auction is coming up in September, Smith expressed a sense of urgency for the Legislature to act before the regional transmission organization does.Absent action, he warned that “if states don’t take some steps to mandate that data centers will pay for that additional power…that could get spread over all ratepayers in the state.”Rep. Tristan Rader, D-Lakewood, added that he also wanted more transparency regarding local officials’ ability to use NDAs and environmental protections in the legislation.“I think HB646 did some work towards highlighting that we do have pretty decent public records laws, but we can do a lot more when it comes towards limiting those NDAs to create more transparency,” he said.With HB15, panelists noted that the law provides for improved permitting processes and access to behind-the-meter energy generation in addition to eliminating subsidies for two Ohio Valley Electric Corp. power plants linked to the FirstEnergy Corp. scandal.Holmes said the legislation was designed to address concerns of supply shortages amid surging supply demand.Asked how the measure helped expand behind-the-meter generation, he told Public Utilities Commission of Ohio Chair Jenifer French that permitting reform was vital toward that aim.“You allow the economy and the sector to go as fast as they possibly can because we’re certainly in a national security imperative to grow this capability, while at the same time growing generation for those users…[and] protecting the existing grid,” he said.
A debate on tax breaks stalls new data center laws in Ohio. What now? - An eleventh-hour effort before summer recess to send data center regulations to Gov. Mike DeWine died late Wednesday night. The last-minute legislation Ohio lawmakers were considering would have created an electric rate class for the state’s data centers, cut local tax abatements of facilities at 50%, and regulated water usage and discharges by them, among other measures. But objections by House members to extend a sales and use tax break ultimately killed negotiations. The amended version of House Bill 646 is unlikely to see any substantive action before November. Sen. Brian Chavez (R-Marietta) said the legislature is limited in how much it can do because of multi-decade commitments. “That was established in the Kasich administration,” Chavez told reporters. “We can’t go back, that cake is baked and half eaten. There may be some things that we can do, but that’s not anything that we can do right now.” Most existing contracts between the Ohio Department of Development and existing data centers stretch years, and sometimes decades, into the future. Amazon, Meta and Google are benefitting for any facility they build statewide through at least 2055, 2056 and 2058, according to Department of Development contract documents obtained by the Statehouse News Bureau. Director Lydia Mihalik suggested Ohio could try and renegotiate. “But candidly, they’re going to make those decisions based on the best movement forward for their business,” Mihalik told the Joint Data Center Committee on Thursday morning. The state underestimated the cost of the sales tax break in 2025 by more than $1.4 billion. Rep. Chris Glassburn (D-North Olmsted) said the lack of insight into the real revenue lost has left him “angry” and “exhausted.” “We need to renegotiate those agreements,” Glassburn told reporters. “I also think if … we don’t even know what we’re doing, we’re going to look like idiots, and right now, we look like idiots.” The Ohio House could reconvene June 24, but Chavez said Thursday the Senate won’t be.
How Ohio's data center tax break became worth billions - Cleveland.com -- When Ohio approved Amazon’s data center tax break nearly 12 years ago, officials highlighted the company’s investment, the jobs created and a 15-year sales tax exemption worth $81 million. What appears not to have been discussed publicly was some important fine print. A clause that could extend Amazon’s tax break all the way to 2055 and apply the 100% exemption to any qualifying facility built or upgraded anywhere in Ohio. Cleveland.com could find no mention of that long-term extension in the Ohio Tax Credit Authority meeting minutes from 2014, nor in news coverage, a recorded press conference or a records request made to Ohio History Connection.
Ohio's data-centers tax break that ballooned from millions to billions - cleveland.com - Ohioans are figuring out that huge, tax-subsidized data centers popping up in pastures like toadstools after a summer shower benefit Silicon Valley and Wall Street, not working Ohioans. That, at a time when Ohio median household income ($80,520 in 2024) lags the national median ($83,720), according to the Federal Reserve Bank of St. Louis, while gasoline and grocery prices skyrocket. Ohio’s data-center tax break appears to have originated as a 2011 Senate amendment to Ohio’s 2011-13 state budget, passed in mid-2011 by a party-line vote – Republicans “yes,” Democrats, “no” – and signed by Republican then-Gov. John R. Kasich. At the time, the legislature’s nonpartisan research arm, the Legislative Service Commission, estimated the computer center tax break would cost the state “several millions of dollars,” according to budget analyses. But last week, cleveland.com’s Anna Staver, who has pioneered coverage of what’s become a lush tax break for Big Data, reported that “[Ohio] gave up more than $1.5 billion in tax revenue [in 2025],” thanks to the data center giveaway. Meanwhile, the General Assembly claims it cannot fairly fund public schools, which in turn drives up homeowners’ property taxes while the legislature unconstitutionally lavishes tax money on religious schools. Among legislators voting “yes” on the 3,200-plus-page 2011 budget that initiated the tax break for data centers were then-state Sen. Keith Faber, a Celina Republican who is the current state auditor (and running for Ohio attorney general), and now-House Speaker Matt Huffman, a Lima Republican. At the time the General Assembly passed the 2011 budget with the data-centers tax break, the late William G. Batchelder, a Medina Republican, was House speaker. The Senate president was Thomas Niehaus, a suburban Cincinnati Republican, now a Statehouse lobbyist whose lengthy list of clients includes data center companies Cologix and Vantage Data Centers Management. Meanwhile, Amazon is fielding seven Statehouse lobbyists; Google is fielding 22 Statehouse lobbyists; and Meta Platforms (Facebook) is fielding eight lobbyists. Now, like Capt. Renault in “Casablanca,” people who know better say they’re “Shocked! Shocked!” to find that the General Assembly hands out tax breaks to data centers as if the Statehouse were a giant Pez dispenser. Which, come to think of it, if you have the right ... friends... it kind of is.
Ohio residents sound the alarm over AI data center 'threat' – YouTube – (includes aerial photography of ongoing construction) Meta's Bowling Green data center and power plant face local opposition over environmental and transparency concerns, as such off-grid projects grow rapidly in the US.
Secret Gas Plants Power AI Data Centers Near Homes - From the front window of her home in Middleton Township, Ohio, Breanne Kidd used to watch the sun come up over open farmland while having her morning coffee before children arrived at her home daycare. That view has since been overtaken by cranes, steel, and construction dust as crews erect Meta’s massive 800-acre Bowling Green data center. What caught her off guard, though, was something no one had mentioned: a large natural gas power plant going up right across the street to supply the project. “We’re literally across the street,” said Kidd, gesturing toward the Apollo Generating Station site in Wood County, roughly 25 miles south of Toledo. “I’m living next to a threat.” The Apollo plant is one of dozens of off-grid power facilities being approved rapidly, and often quietly, across the country to meet the tech industry’s surging energy appetite. A Reuters review of regulatory filings and interviews with residents, officials, researchers, and executives found that these plants, built exclusively to power individual data centers, are being greenlit in weeks or months rather than the years typically required for conventional energy projects. Developers contend that facilities serving private customers are exempt from many standard rules, leaving communities with little say about projects that affect their air and climate. Transparency has been further eroded by the use of non-disclosure agreements with local governments, shell companies, and redacted public documents, the reporting found. According to Harvard postdoctoral researcher Michael Cork, the AI industry’s off-grid natural gas generation is becoming one of the largest underexamined air-quality risks in the country. The Apollo facility, which has enough capacity to power around 100,000 homes, was approved by the Ohio Power Siting Board on February 3, fewer than three months after plans were filed. The state’s draft air permit wasn’t made publicly available until March, after construction had already begun. Though the plant serves only Meta, paperwork identified the client as a subsidiary called Liames LLC. Research firm Cleanview’s data provided to Reuters shows at least 57 off-grid power plants are proposed or under construction in the US to serve individual data centers, with a combined capacity of 73,000 megawatts. Reuters identified more than a dozen such projects approved in under a year with little or no community notice. Two are already running, including a facility outside Memphis tied to SpaceX’s xAI operation and another in Ashburn, Virginia serving Vantage Data Centers. Most of these plants burn natural gas, which releases nitrogen oxides and fine particulate matter tied to respiratory illness, along with greenhouse gases. Supporters argue these projects are critical to AI development and keep costs off consumer electricity bills. The Trump administration, framing China as a competitor, has pushed to speed up permitting for AI infrastructure. The EPA and several states, including Ohio, West Virginia, Texas, and Utah, have proposed or enacted policies to accelerate approvals. Ohio passed a law last year allowing certain plants to be approved in as little as 45 days with no public hearings, which helps explain Apollo’s swift greenlighting. State officials view data center development as an economic boon, particularly in northwest Ohio, where land availability, water access, and proximity to natural gas pipelines have attracted major tech companies. The Regional Growth Partnership’s Gary Thompson said officials are hoping to land ten hyperscale data centers in the area. “These companies need certainty, and they need power,” he said. Some residents are pushing back. “One gas plant and one data center may be manageable,” said Perrysburg resident Lauren Berlekamp, “but four or more becomes a regional public health event.” The Apollo project is being built by Will Power LLC, a subsidiary of pipeline company Williams Companies, which is developing four similar projects in Ohio. A company spokesperson said the facilities comply with state regulations and noted that the Ohio EPA held a public hearing on Apollo in April. Meta said its partners are required to meet air-quality rules. Ohio lawmakers have also recently enacted provisions shielding major projects like data centers from public records laws, with officials potentially facing criminal charges for releasing such information. The provision was inserted into an unrelated college athletics bill by Republican state Senator Brian Chavez, whose top two donors in 2025 were a construction union supportive of data center development and utility NiSource, each contributing $10,000. Supporters say such measures protect sensitive business information. Critics see it differently. “It undermines our fundamental concepts of democracy: transparency and accountability,” said Andrew Kear, a political scientist at Bowling Green State University. Retired police officer Christine Coultrip, of Perrysburg Township, said neighbors have been approached to sell property for a possible data center but that local officials won’t share details. “I’m very disturbed that legislators can be charged if they talk about data center economics with their constituents,” she said. Pushback has emerged in other states as well. Microsoft announced in March it would stop using non-disclosure agreements nationwide following criticism tied to projects in Wisconsin. Meta said confidentiality agreements are standard in site selection and do not stop partners from engaging with the public. Musk’s xAI has also faced scrutiny in Tennessee and Mississippi for operating gas turbines without permits to power its Colossus data centers, claiming the units are exempt as temporary and off-grid. In West Virginia, legislation passed last year exempted certain data center microgrids from local zoning laws. A large gas plant proposed in Tucker County received a state air permit that year, with key technical details redacted from public documents. Near Columbus, Ohio, township trustee Brian Rothenberg said his community recently learned of plans for a gas fuel-cell power plant, potentially the largest of its kind in the US, to serve an Amazon Web Services data center. Local officials have been seeking safety details for a nearby elementary school, but utility AEP and state regulators have not provided them. “My biggest concern is health and security,” Rothenberg said. “I don’t want my constituents to be lab rats if something goes wrong.” AEP said it has shared emergency information directly with local fire departments and first responders. Ohio’s EPA said it cannot comment on the project while a legal challenge to its permit is pending. Back in Middleton Township, Breanne Kidd says the uncertainty weighs on her. “For my family and my daycare families, their safety is my number one priority, and I feel like right now I can’t guarantee that. It’s all out of our hands.”
Hubbard trustees discuss their tour of a data center -— Trustees who went on a tour of a data center location nearly two hours southwest of them agreed that the experience felt like an episode of “The Truman Show.” Earlier this week, trustee Eric Lamb said he traveled to New Albany, Ohio, to participate in an economic development tour that was focused on data center construction and operations, as well as construction practices and utility demands associated with a large-scale data center. New Albany is home to 40 completed data centers across 15 companies, with 28 more announced or under construction in its “IT and Mission Critical Cluster,” a high-availability infrastructure designed to host applications and services that cannot experience downtime without severely impacting business operations or safety, according to a presentation from the city. The city welcomed its first data center investment in 2010, its first hyperscale investment in 2015, and Meta in 2017, with Google following two years later, according to a timeline in the presentation. The timeline shows that more than 15 total data centers were under construction by 2024, with 40-plus being completed in 2026. Lamb said the visit “skewed” his mind away from the thought of having one in the area. “In this area, we’ve been talking about like one, two data center (projects) in areas and stuff like that; this is a town that took and put 40 in,” Trustee Jason Tedrow said. “They’ve taken this to the hyperscale more or less.” Tedrow said the tour was “kind of disappointing” in the sense that he felt it was trying to be a sales pitch, as opposed to informing leaders, and expressed belief that some of the information wasn’t presented properly. Tedrow said he asked officials if anyone had an issue with the data centers, questioning if they saw a shift in their voter base because people coming to town to work there wouldn’t vote against it. Lamb said they drove for about 12 miles, and they saw 20 houses, with half of them boarded up. “They built a 15-minute city — it was surreal. No high signs, like a town of 11,000 people had Verizon stores, AT&T stores,” Lamb said. “All the fast food and restaurants you could possibly think of, brick buildings, white picket fences everywhere.” “It was 88 miles of horse fence through the town with asphalt sidewalks,” Tedrow said. “Everything was a lot of commercialized stuff, and everything was highly controlled; it felt like you were in an episode or in the movie ‘The Truman Show.'” “The Truman Show” is a 1998 American comedy-drama directed by Peter Weir starring Jim Carrey as Truman Burbank, a man who is unaware that he is living his entire life on a colossal soundstage, and that it is being filmed and broadcast as a reality television show that has a huge international following. All of his friends, family and members of his community are paid actors whose job is to sustain the illusion and keep Truman unaware that the world he inhabits is scripted and fake. Tedrow said that, after doing research, major cities will run 800 to 3,500 strand fiber-optic cables, but New Albany is running 5,000-plus strand trunk lines all over the place. “They have the main facility for American Electric Power Company for 11 states centralized down there, they’re putting in Meta facilities, they’re putting in the Intel semiconductor facility down there,” Tedrow said. “And that building is massive, and they went 40 feet down, basically, and put a basement in, something like General Motors in Lordstown for us.” Tedrow said such an endeavor is a huge expense, but it was explained that it was a partnership between the city and a land developer called the New Albany Company, which he noted was founded and co-worked on by Les Wexner and Jeffery Epstein. “That kind of gave me a little bit of a — I don’t know if that’s really what I want to trust on you selling me that this is a good idea,” Tedrow said. Tedrow said the community is considered a “master plan community” — a large-scale, self-contained residential development designed comprehensively from day one. “Everything is HOAs, homes starting in the mid to high $400,000s; a lot of the stuff is, your landscaping is part of the HOA fees, everything else. You can walk to the city, you can ride golf carts around there,” Tedrow said. “Depending on which neighborhood you’re in, looking up into it, some of the HOA fees include the country club membership.” Tedrow said they basically privatized the entire government, but Lamb said it was more of a business. “They have a mission statement, and then pillars they’re holding on what they want to do to grow this community out,” Tedrow said. Lamb noted his own experiences running a business, and called it “hard-pressed” to see $100 million corporations and holding pillars for 30 years — especially when the community only had a population of 1,000 back then. “It definitely put a different perspective on it, I think it was a little concerning,” Tedrow said. Tedrow said he spoke with a Lake to River representative while he was there, who informed them that even though the township has a moratorium and their zoning commission is working on a moratorium, there is a developer interested in Hubbard Township — aside from the one in the city. Tedrow said the zoning commission tried for an outright ban on data centers, but they legally can’t do one, which is why they pushed for the moratorium. He said the commission has some draft items, but trustees are giving them time so they can be thorough, and the community will have time to voice opinions and concerns.
Urbana set to vote on ordinance that would cut off zoning for data centers - A company looking to put a data center in Urbana just dropped about $3.5 million to purchase another 100 acres near the planned site. However, a new city ordinance that passed Tuesday night may upend those plans. After around two years since land was first purchased for a new data center, Ordinance 4634-26 could prevent a new data center from even breaking ground. Tuesday’s vote by the Urbana City Council was the third and final time the rezoning ordinance would be reviewed before it is officially codified. This new measure would remove data centers from being permitted under the zoning distinction M1, which already allows uses for light manufacturing and office buildings. “We don’t need that data center,” said an Urbana resident who wished to remain nameless. “I don’t feel we need anything like that…I don’t think it’s going to benefit the city at all.” Residents say they are also puzzled because Thor Equities, the developer heading the project, had just purchased another 100 acres for $3.4 million adjacent to the first parcel. “These kinds of things are pretty troubling,” said Champaign County Commissioner Nino Vitale, “but we live in an environment where sometimes these big companies with a whole lot of money get what they want.” Vitale says the final of the three parcels, one that was owned by the county, is currently locked under a contract for another year before they can take back control. “We’ve consulted with several attorneys,” he says. “We are doing everything we can to not sell that land.” When asked to comment on Thor Equities’ land purchase and the potential ordinance, Urbana City Councilor Amy Jumper responded in part: “My responsibility is to represent my constituents and make decisions that protect the long-term interests of our community.” Neither the office of Urbana Mayor Bill Bean nor Thor Equities responded for comment. Update: The measure to remove data centers from being permitted unanimously passed.
Alliance City Council restricts data centers to I-2 industrial zones - Canton Repository - Until now, Alliance was largely ripe for the picking for data centers, with few limits on where they could locate. City Council approved legislation June 15 to restrict future data centers to I-2 industrial zones. The vote was 7-0. Councilman Phillip Mastroianni called the change a "baseline" to protect commercial and residential areas from data centers. There is no current proposal for new data centers in Alliance, but Mastroianni said he expects more debates and potential action in the future. "It is a fluid conversation," he said. The vote followed a fiery, emotional public hearing that drew more than 110 people to the banquet room at Alliance Area Senior Center. Tarah Renee Bentley and her husband, Kenneth, collect signatures on a petition to fight data center expansion in Ohio on June 15, 2026, at Alliance Area Senior Center. At least 30 people signed the petition. Many residents seized the moment to fire a warning shot against any future proposals, despite the fact that the focus of the hearing was a zoning change, not an actual project. The residents who spoke raised concerns about the strain data centers can have on water use, power grids, noise, tax breaks and potential long-term effects on neighborhoods. Similar concerns have been raised across many Ohio communities. They also threatened to elect new council members if they allow data centers, and demanded a moratorium or outright ban. At least one person wanted the issue put on a ballot. "Our vote counts," the Rev. Nick Myers Jr. warned. To ban or allow: The possibility of moratorium was raised Several council members raised the possibility of a ban or moratorium, but there is no current legislation to debate or vote on. Stephanie Lambert of Alliance vehemently opposes data center growth in Ohio, including in the Alliance area, and was joined by about 100 others at a public hearing June 15, 2026, in Alliance. Mastroianni seemed unlikely to support a moratorium and said it might show that Alliance is "not open for business" and drive away economic growth. Alliance resident Stephanie Lambert said there are already too many data centers across the country, including more than 200 in Ohio, and argued against them for Alliance. "We don't need more here," she said. A couple of residents said the city should fix its power system and water quality before a data center attaches to both. They claimed there are too many outages and poor water taste. Resident Aaron Maltarich was upset because he recently got a letter stating that his water might have lead issues. He said the water has made his cats sick and affected his health. More than 100 residents attended a public hearing on June 15, 2026, regarding data centers in Alliance, with at least 15 people speaking in opposition to centers at Alliance Area Senior Center. There are currently no projects in the city. "I beg each and every one of you to hear these people speak, weigh the consequences. It's not just going to magically disappear because you voted for it," he said. Ashley Huff, another city resident, argued against tax breaks for data centers. "Look across Stark County right now, Canton City Council and Perry Township trustees rolled over and gave Amazon a 30-year, 75% property tax abatement," and created a subprime investment, Huff argued. "The facilities are resource parasites." Only one person spoke in favor of data centers. Mark Fedor, chief executive officer for Morgan Engineering, said the concerns over data centers are valid and legitimate and should be addressed. Mark Fedor, chief executive officer of Morgan Engineering in Alliance, says he supports data center growth in the Alliance area, calling it the future. He also validated people's concerns over power grids and water supplies. He said it will take civic and community leadership to create policies and plans to make sure data centers are responsible neighbors in communities. However, he said data centers are the future for the economic welfare of a community, saying today's growth is driven by the digital industry, a long-term shift in the world. "The data centers are the backbone of an economy that supports business, healthcare, education and emerging technology," Fedor said. "This isn't a short-term trend."
Data center discussion spans 3+ hours as Shalersville mulls 257-acre project – WEWS - — Forty minutes before the meeting started, the Shalersville Town Hall was at capacity for Bitdeer’s pitch to township trustees to put a data center campus in a business park next to the Ohio Turnpike. Rows of people lined the open windows outside to listen in and learn what Bitdeer’s plans would look like for 257 acres at the Turnpike Commerce Center in Shalersville Township. Around 200 people filled inside the Shalersville Town Hall, while another 80 or so stood outside and listened in through the opened windows. The publicly traded company, based in Singapore, aims to fill much of that site with a 15-building computing hub to meet growing demand for artificial intelligence. The company is partnering with Streetsboro-based Geis Development, part of a family-owned real estate and construction business, on what is expected to be Bitdeer's largest facility in the U.S. A site plan shows the two phases of the proposed Bitdeer data center project in Shalersville, just north of the Ohio Turnpike. Bitdeer; Geis Cos. A site plan shows the two phases of the proposed Bitdeer data center project in Shalersville, just north of the Ohio Turnpike. The meeting, spanning 3.5 hours, consisted of an hour-long presentation from Bitdeer and Geis, followed by questions from the audience and from township trustees. Much of the discussion centered on issues such as energy consumption, water usage, noise and other environmental impacts. The first phase of the project would span two data halls and a 51,500-square-foot office building at the southwestern end of the property. A site plan shows 12 additional data halls in the second phase of the project, with a total capacity of 750 megawatts of power when completed. The power will be used to help fuel artificial intelligence. Drone video shows the proposed site for Bitdeer's data center campus, spanning both sides of Beck Road. The plan in Portage County calls for 400 local construction jobs over a five-year period, as well as between 150 and 200 local jobs at Bitdeer when the project is fully built out. Bitdeer said it would generate $2.17 million in real estate tax revenue annually when Phase 1 is complete. The company added that would mean a 35% tax revenue increase for Crestwood Local Schools, a 115% increase for Shalersville Township, and a 39% increase for the joint fire department. Small computing halls like these, at Bitdeer's cryptocurrency mining facility in Massillon, are similar to what the company's proposing in Shalersville. Bitdeer currently operates a 26-building cryptocurrency mining facility in Massillon on 31 acres, which company representatives referenced repeatedly during the meeting as a sign of success. However, the Shalersville project would involve 257 acres. Paul Hanson, Bitdeer's senior project manager, told the crowd why the company sought out this specific location. "The size of the land, an industrial location that's close to a very good transportation hub, and the availability for long-term power — that's what made this property very attractive to us," Hanson said. At times, the meeting got heated, as many called for Bitdeer to abandon its plans or for township trustees to deny the proposal. "This is America," said one woman. "We’re about to celebrate 250 years. What does that mean if we can’t say no?" At one point, a room full of hands went up as one local asked for those against the data center to raise their hands. Jim Tighe and his wife sat in the front row for the entire meeting. They live about a mile from the proposed site. "There's obviously a lot of anger in the community about it," Tighe said. "There's a general uncomfortable feeling about AI, and this is what it's going to do. There's just a lot of unknown about it." Last month, Bitdeer hosted hundreds inside a nearby warehouse for a community informational meeting. Watch that story here:
Southern Ohio community embraces world's largest AI data center – YouTube - Increasingly, people across the country are protesting proposed AI data centers, concerned that the centers will drain resources, strain power grids, and cause noise and pollution. But a plan to build the largest AI data center in the world in southern Ohio is being welcomed by many with open arms
Amid nationwide backlash, an Ohio county welcomes the world's largest AI data center --- (SOA) — Increasingly, people across the country are protesting proposed AI data centers, concerned that the centers will drain resources, strain power grids and cause noise and pollution. But a plan to build the largest AI data center in the world in southern Ohio is being welcomed by many with open arms. On March 20th in Pike County, Ohio, under a large tent filled with music and lights, Trump Cabinet members and a long list of elected leaders gathered for a major announcement. Before addressing the crowd, a big screen played a video, setting the stage for their major announcement. As renderings of power plants and a massive new AI center appeared on screen, it became clear how big this day would be. The Portsmouth Gaseous Diffusion Plant (PORTS), a Cold War-era, uranium enrichment plant that once armed America’s nuclear bombs, will soon be the site of the largest power and technology campus on the planet. "PORTS Technology Campus, where the future begins and the American people win,” boomed the voice of the video’s narrator. Then, one-by-one, the leaders came to the podium. "We are embarking on the next era of American dominance," said Assistant Secretary of Environmental Management Tim Walsh. A dominance that’s centered on what will soon be the largest AI data center on earth, combined with a massive $33 billion natural gas-powered power plant and 18 new, nuclear fueled small modular reactors (SMR) to power it. Chris Wright, U.S. Secretary of Energy drove home how truly big this project is. "This facility that's going to be built here is bigger than any facility ever built in world history," Secretary Wright told the crowd. To build it all, Co-CEO of SB Energy, Rich Hossfeld said it will take an army of workers. “35,000 will build the new Ports Technology Campus, transforming it into a beacon for not only the US, but the entire world,” Hossfeld proclaimed. Japanese investment group SoftBank is funding it with the mind-bending budget. "$1.5 trillion." Across America, AI, from Maine to Washington, data centers are increasingly driving dissent and outright protest, as people pack meetings, gather on streets and sidewalks, carrying signs that read, “NO A.I. DATA CENTERS.” Obstinance to the construction of the AI data centers vary, but many times is rooted in the perceived use of water and electricity that such facilities will drain at the expense of people who live and work nearby. Others note the noise and air pollution caused by back-up generators already utilized by centers that already operate in places like Northern Virginia. But in Pike County, Ohio, many are welcoming the newest and largest AI data center on earth with open arms. "I think it's important for the community," said Stephen Woloschek, an employee who’s working to demolish the old PORTS plant, adding that the jobs will help the area that is economically depressed, ranking third lowest in the state of Ohio for per capita income. The announcement to build the biggest project on the planet stunned many here in this Appalachian pocket of the state, including Steve Shepherd, executive director of the Southern Ohio Diversification Initiative, or SODI, the organization tasked with redeveloping PORTS after the old plant is gone. "I would say very surprised. Maybe, still in shock," Shepherd told us, weeks after the announcement. It might have caught him off guard, but no one is more supportive of the new data center than he is, saying it’s a “perfect fit” for the new, gigantic AI data center because of the infrastructure that already exists for the Cold War plant that once consumed 30,000-to-40,000 gallons of water a day, the same amount the gigantic AI data center is expected to need. And a power grid that was built for the old plant provided an epic amount of electricity for the old plant, as well. "We used 3-percent of the nation's electric, the same amount that New York City used," he said. The U.S. Department of Energy (DOE) is spending $14 billion to $18 billion to decontaminate, dismantle and dispose of the old equipment and buildings at PORTS. But as the old plant is being erased and replaced, its radioactive legacy remains. "I got people living on properties they shouldn't be living on," said Jennifer Chandler, who chairs the Scioto Valley-Piketon Area Council of Governments (COG). For years, Chandler has been balancing the drive to reindustrialize the PORTS site, while leading the push to clean up or move families out of dozens of homes that a recent report reveals the properties are riddled with unsafe levels of radioactive contamination. Click here to view the PDF file. Darwin Pettit’s farm was found to be one of the most contaminated. "This is the most contaminated place around here," Pettit told us, adding that he believes no one truly cares enough to do anything about it. But Chandler, who has been working with the state of Ohio and DOE to move the families or remediate the contaminated properties, says the redevelopment of the PORTS complex to the new tech campus may be providing the perfect solution. While the contamination is too high for families to live on, Chandler says they are safe for industrial use, due to the limited exposure and other factors considered by the U.S. EPA. And in a lucky twist of fate, Chandler says a dozen of the contaminated residential properties have already been purchased to make way for the expanding footprint of the future tech campus. "That land will now be appropriately industrial use," she said with a smile. As other parts of the country increasingly protest AI data centers, it’s clear that people surrounding the old PORTS plant are embracing the opportunity to repurpose a dirty past by rebuilding a future with AI.
A half-trillion dollars for Pike County? Many questions linger on mega data project - Columbus Dispatch - Superlatives filled the air just as the dirt was being slung from the shovels of Japanese investors, Trump officials and local politicians who broke ground March 20 on a proposed gas-fueled power plant in Pike County.
Ohio proposed constitutional amendment to ban data centers will not be on this year's ballot - Ohio voters will not have a chance to vote to ban data centers in the November election. Conserve Ohio, the grassroots organization behind the proposed constitutional amendment, said they are now hoping to make the 2027 ballot. The amendment would prohibit building data centers with a peak load of more than 25 megawatts per month, which would prevent most modern data centers. “We want to make it clear: we will not be stopping,” Conserve Ohio said in a statement. “Construction won’t be stopping, so signature gathering and community action will not be stopping.” Conserve Ohio originally was trying to make this year’s ballot after the Ohio Ballot Board gave petitioners the green light to start collecting signatures in April, but they were up against a tight deadline. “The July 1st deadline was our best case scenario for the quickest possible action,” Conserve Ohio said in a statement. “Internally, we set that as our ideal target and it just didn’t pan out. We are not going to be submitting this year.”The amendment would have needed more than 413,000 signatures from at least 44 of Ohio’s 88 counties by July 1 to get on this year’s ballot. The signatures they have collected so far remain valid since they did not submit them to the Ohio Secretary of State. Conserve Ohio has collected more than 70,000 signatures as of June 18, according to their campaign. The counties with the most signatures are Lucas County (6,482), Stark County (6,329), and Butler County (4,030).“We can’t change when we began, but we can determine how it ends,” Conserve Ohio said. “All is not lost. The end goal has not changed. Our resolve has not changed.” Conserve Ohio is only using volunteers to collect signatures, and they have more than 1,000 volunteers. Ohio has more than 200 data centers, the sixth-highest state in the country, according to Pew Research Center. Most of the data centers are in central Ohio. Cincinnati has 26 and Cleveland has 22, according to the Data Center Map. More than a dozen Ohio cities have enacted temporary moratoriums on data centers.Ohio lawmakers have yet to pass any data center legislation. Ohio House Bill 646 would, among other things, limit the size of new sales tax breaks from 100% down to 50%. But this would not apply to any of the companies with existing contracts, like Meta, Google and Amazon. The state provided almost $1.57 billion in sales-tax exemptions on purchases of data center equipment and construction materials last year, according to the Ohio Department of Taxation. A large data center can use as much electricity as 100,000 homes, according to the Office of Ohio Consumers’ Counsel.Data centers used 4% of all U.S. electricity in 2023 and that is expected to grow to 9% by 2030, according to the counsel. A large data center can use up to five million gallons of water per day, according to the Environmental and Energy Study Institute. Lawmakers in at least 14 states — Georgia, Maine, Maryland, Michigan, Minnesota, New Hampshire, New York, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, Virginia and Wisconsin — have introduced legislation that would temporarily ban data centers, according to the National Conference of State Legislatures.
Will Ohio become one big data center? Here is what you can do about it - Sierra Club - Ohio is rapidly turning into one of the primary digital hubs of North America. Tech conglomerates like Amazon, Google, and Meta are investing billions of dollars to construct massive data center campuses across the state, particularly in Central Ohio. These facilities house thousands of servers that process everything from cloud storage to advanced Artificial Intelligence (AI) algorithms. However, behind the sleek, windowless facades of these centers lies an insatiable appetite for resources that threatens Ohio’s environmental future.The primary concern is energy consumption. A single large data center can consume as much electricity as a moderately sized city. Because Ohio’s energy grid is still heavily reliant on fossil fuels—particularly coal and natural gas—this sudden surge in demand is prolonging the lifespan of dirty power plants. Instead of transitioning toward renewable energy, utility companies are scrambling to build new natural gas infrastructure and keep aging coal plants online just to keep pace with the tech industry’s demands. Beyond electricity, data centers require millions of gallons of water daily to cool their overheating servers. In areas already facing localized water strain, this places a massive burden on municipal water systems and aquifers. Furthermore, consumers are left holding the financial bag; utility companies routinely pass the infrastructure costs of building new transmission lines and substations onto everyday ratepayers. What You Can Do About It: Citizens are not powerless against this rapid expansion. Here is how you can take action:
- Demand Transparency and Regulation: Write to your local zoning boards and city councils. Demand that any proposed data center undergo rigorous environmental impact assessments regarding water and energy use before approval.
- Advocate for Renewable Energy Mandates: Push the Public Utilities Commission of Ohio (PUCO) and state legislators to mandate that data centers secure 100% of their power from newly built, localized renewable energy sources (like solar and wind) rather than drawing directly from our fragile, fossil-fueled grid.
- Hold Tech Giants Accountable: Support campaigns that demand these multi-billion-dollar corporations fund local conservation projects, improve water-cooling efficiencies (such as transitioning to closed-loop air cooling), and pay their fair share of infrastructure upgrades so the financial burden doesn't fall on Ohio families.
Ohio residents sound the alarm over AI data center 'threat' | Reuters video - Many Ohio residents are angered about the construction of Meta's 800-acre Bowling Green data center, as well as a large natural gas power plant meant to serve the project. The plant is one of dozens of large, off-grid power projects being approved rapidly and often under a cover of secrecy across the United States to supply the tech industry’s booming demand for powering data centers, according to a Reuters review. This report produced by Jillian Kitchener.
Why the Kinder Morgan Utopia Pipeline stays quietly crucial for US plastics and farmers - Kinder Morgan's Utopia Pipeline looks unspectacular from the outside, but for US ethane producers and Ohio's plastics industry it is one of the quiet workhorses in the background. What the system moves, how it is built, and why its capacity still matters. From the outside, the Kinder Morgan Utopia Pipeline is just a buried steel line cutting through quiet farmland, but along this route ethane flows toward Ohio's plastics industry and keeps crackers humming on gray weekdays and bright harvest mornings alike. Pipelines like Utopia feed directly into Kinder Morgan's fee-based earnings model and help explain why investors follow the group's long-term project portfolio so closely. The Utopia Pipeline is a roughly 270-mile system moving purity ethane and ethane-propane mix from the prolific Utica and Marcellus regions in the US Midwest toward petrochemical demand hubs in Ohio. It starts near Harrison County in Ohio, ties into existing midstream infrastructure, and delivers feedstock to Nova Chemicals' Geismar-area and Ontario-linked customers, enabling steady production of polyethylene and other plastics building blocks. Kinder Morgan originally designed Utopia with a capacity of around 50,000 barrels per day, with expansion potential baked in via additional pumping power and possible looping if demand grows over time. For people living along the right-of-way, the pipeline is mostly an underground presence: occasional maintenance crews, small fenced valve stations, warning signs at field edges, and the low mechanical hum of pumping sites set back from local roads. Ethane is a light hydrocarbon extracted from natural gas streams, and in steam crackers it turns into ethylene - a core feedstock for polyethylene, PVC intermediates, and a long list of everyday plastic products from packaging film to cable insulation. By securing a direct ethane supply from shale basins to Midwest and Great Lakes chemical plants, Utopia helps reduce feedstock volatility for operators that would otherwise depend more heavily on railcars, truck deliveries, or imported liquids. The line does not stand alone. It plugs into Kinder Morgan's broader NGL and petrochemical infrastructure, including storage caverns and interconnections with other pipeline systems that move natural gas liquids toward the Gulf Coast and Canadian markets. Because Kinder Morgan typically operates on long-term, fee-based transport contracts, throughput on Utopia tends to translate into relatively predictable cash flows rather than commodity-price-driven swings, as long as contracted volumes hold. Like other interstate liquids pipelines in the US, Utopia falls under the oversight of the Pipeline and Hazardous Materials Safety Administration, which sets rules on integrity management, inspections, reporting and emergency preparedness. In practice, that means periodic in-line inspections with smart pigs, cathodic protection to limit corrosion, aerial patrols checking rights-of-way, and drills with local fire departments so that response plans are more than just paperwork. Demand for ethane and other NGLs in the Midwest and along the Great Lakes will depend on how aggressively plastics production grows, how many new crackers or derivative plants reach final investment decision, and how recycling and regulation reshape long-term volumes. For a buried asset like Utopia, that can translate into incremental debottlenecking projects, tie-ins to new customers, or, in a slower-growth case, a focus on optimizing operations and keeping utilization high with a stable, contracted shipper base.
Yaw: Bradford County and municipalities to receive nearly $17M in gas impact funds — Sen. Gene Yaw announced Monday that the Marcellus Shale Impact Fee is continuing to deliver millions to both county and local governments across Yaw’s 23rd Senate District. The Pennsylvania Public Utility Commission said Bradford County is slated to receive $6,081,855 in Act 13 funds. Since 2011, the PUC has disbursed approximately $87.2 million to Bradford County. The PUC also announced $10,704,310 will be disbursed to local governments within the county. Since 2011, the PUC has distributed $146.5 million to municipalities within Bradford County. “The Impact Fee not only funds critical projects locally but also a wide variety of important environmental projects in communities throughout the state,” Yaw said. “The natural gas industry has been a great partner in creating new jobs and opportunities, and today’s announcement is another reminder of the importance of this industry in Pennsylvania.” Since 2011, the Impact Fee has reportedly generated more than $3.12 billion in revenue to support county and local governments. Yaw’s district has received more than $531 million for counties and municipalities during that time. In the most recent round of funding based on natural gas production in 2025, $243.9 million was distributed statewide. Of that, nearly $39.1 million will be provided to counties and municipal governments in Yaw’s district, which covers Bradford, Lycoming, Sullivan, Tioga and Union counties.
XTO Energy Looks to Compel Arbitration in W. Pa. Royalties Case -- Marcellus Drilling News -- In February, MDN told you about the Kriley v. XTO Energy lawsuit (see Long-running Lawsuit Against XTO Energy Over Royalties in W. Pa.). The lawsuit began in 2019 and involves seven landowners in Butler County, PA. The landowners claim that XTO Energy (a subsidiary of ExxonMobil) systematically underpaid natural gas royalties. Over the past six years, the lawsuit has evolved and was certified as a class action in late 2025, meaning it has expanded from affecting 7 landowners to over 2,000. XTO is trying to reduce that number significantly by demanding that leases with an arbitration provision be sent to individual arbitration and excluded from the larger class action.
Seneca Finds Zero-Permeability (Frac Proof) Upper, Lower Utica Frac Barrier - Hart Energy - Appalachia-focused Seneca Resources has found a “seismite” frac barrier between the upper and lower Utica in its north-central Pennsylvania wildcatting in Tioga County.
Seneca Finding Success with Upper AND Lower Utica on Same Pad -Marcellus Drilling News - Based on recent industry reporting from Hart Energy (published June 15, 2026, by veteran energy journalist Nissa Darbonne) and corporate commentary from National Fuel Gas (NFG), Seneca Resources has made a major geological discovery in its north-central Pennsylvania Utica shale acreage in Tioga County. Seneca Resources has identified a unique geological feature—a "seismite" frac barrier—located precisely between the Upper and Lower Utica shale intervals in north-central Pennsylvania. What does it mean?
Quiet workhorse in shale, EQT Corporation's Marcellus drilling program shows its real strength --EQT Corporation’s Marcellus drilling program does not glitter like a gadget, but for gas buyers and midstream partners it is the quietly decisive product line - long laterals, disciplined costs, and a clear methane-reduction strategy set the tone. EQT Corporation’s Marcellus drilling program is not something you can put on a shelf, but you feel its presence every time a gas-fired power plant hums a little steadier on a cold evening. It is EQT’s core “product line” in the Appalachian Basin, a technical routine that has quietly become highly optimized. Production strategy in the Marcellus Shale and capital discipline sit at the heart of EQT’s investment story. Think of EQT’s Marcellus drilling program as a series of long, horizontal wells stitched under Pennsylvania and West Virginia, feeding a steady river of natural gas into U.S. pipelines. The company is now the largest U.S. natural gas producer, anchored in this play. On its latest investor materials, EQT outlines how the Marcellus and adjacent Utica volumes support a firm production profile of roughly 6 billion cubic feet equivalent per day, with a drilling inventory that stretches well beyond a decade. For utilities and LNG exporters, that depth matters more than glossy branding. Core to the program are long laterals - often more than 12,000 feet - and multi-well pads that let one location feed several boreholes. Fewer surface sites mean less local disruption, more efficient logistics, and lower per-unit costs for fuel buyers. EQT describes a completion design that relies on high-intensity hydraulic fracturing, dense stage spacing, and proppant-heavy fluid to open up the Marcellus’ dense rock. In plain terms, each well is pushed hard early, giving gas marketers robust initial volumes that then decline predictably. For investors and large gas buyers, the “feel” of this product is really about cost per thousand cubic feet produced. EQT’s published numbers show unit operating costs in the low $1 per Mcfe range, helped by scale and tight pad operations. That gives room when Henry Hub prices are moody. On the ground, that efficiency looks like well-organized pads with fleets of trucks cycling water, sand, and equipment in tight choreography. The noise and light are intense during completion, then the site settles into a humming, fenced installation tucked behind tree lines and farm fields. EQT has leaned hard into positioning its Marcellus production as lower-emission gas. The company highlights independent certification for a large portion of volumes and has signed onto frameworks that target methane leakage below 0.05 percent of production. For European buyers, that badge matters. The program includes routine leak detection with optical gas imaging cameras, replacement of high-bleed pneumatic devices, and electrification where midstream infrastructure allows. Those steps do not make the wells silent or invisible, but they do address the dirtiest parts of traditional gas production. There are trade-offs. The same dense development that brings cost savings can heighten local resistance to new pads, truck traffic, and compressor stations. Permitting in parts of the Appalachian Basin remains contentious, particularly for new gathering and takeaway pipes. Geologically, the sweetest Marcellus zones are already well mapped and increasingly developed. That pushes incremental drilling into rock that may be just a little tighter or deeper, where maintaining the same returns requires relentless tinkering with completion recipes and spacing. Most molecules from EQT’s Marcellus drilling program end up burned in U.S. power plants, industrial boilers, and home heating appliances, with a growing wedge slated for LNG export terminals along the Gulf Coast. It is a product that rarely carries EQT’s name by the time it reaches an end user. Yet in gas trading books and long-term supply contracts, reliability and volume matter as much as brand. Here EQT’s scale and concentrated Marcellus footprint allow it to offer firm volumes and hedging strategies that appeal to utilities planning multi-year fuel mixes. Company context and stock snapshot EQT Corporation describes itself as the largest producer of natural gas in the United States, with operations focused in the Marcellus and Utica shales and a strategy built around scale, efficiency, and emissions performance. The Marcellus drilling program sits squarely at the center of that model.
AI is Reshaping How Oil & Gas Wells Get Drilled in the Marcellus -- Marcellus Drilling News --- As we so often say, we love how creative and innovative the oil and gas industry is! We spotted an article that discusses how AI (artificial intelligence) is transforming oil and gas drilling operations across diverse environments—from Alaska’s harsh North Slope to deepwater operations off Guyana to U.S. shale fields like the Permian Basin and (yes) the Marcellus Shale. AI-driven systems now interpret real-time sensor data from drill strings, adjust drilling parameters automatically, optimize directional drilling, monitor drilling fluid chemistry, and evaluate cement integrity faster than human operators. Results include drilling speeds up to 50% faster and pressure-imbalance detection 10-12 minutes earlier than with conventional methods.
Data Shows West Virginia Bucks Trend, Uses More Gas Than Renewables --- Marcellus Drilling News -- Despite renewable energy growth across the globe, fossil fuels still dominate in the U.S. and West Virginia in particular, where EIA data shows natural gas production climbing nearly 20% over five years while renewables stagnate. GO-WV President-Elect Rebecca McPhail attributes this to abundant resources, established infrastructure, a skilled workforce, and surging demand from data centers and manufacturing. West Virginia, the nation’s fifth-largest oil and gas producer, faces topographic and climatic challenges that limit the use of unreliable renewable energy sources. In the PJM Interconnection, gas and nuclear lead, with renewables under 10%.
WV DEP Reviews Gas Pipe Permits for Data Center in Mason County - Marcellus Drilling News -- In early May, MDN brought you details about a proposed NSCALE data center project in Mason County, WV (see Mason County, WV Data Center: 3 Bldgs, 984 NatGas, Diesel Engines). The owners filed an application (on April 20) for a construction permit. The first phase of the project will be a 2.16-gigawatt, natural gas-fired off-grid data center. It’s going to produce its own electricity, so pipelines are needed to transport gas to the site. The West Virginia Department of Environmental Protection (WVDEP) is currently reviewing a construction permit for the pipelines that will flow gas to the data center.
Virginia Business Leaders Make Strong Case for Expanded MVP Boost - Marcellus Drilling News -- With all the recent news about EQT moving forward with an extension of the 303-mile Mountain Valley Pipeline (MVP) into North Carolina by an extra 31 miles, called Southgate, it’s easy to overlook and forget that EQT has a plan to expand the capacity of the existing MVP by an extra 600 MMcf/d, called MVP Boost. EQT filed with the Federal Energy Regulatory Commission (FERC) in October of last year to build Boost, which includes building a new compressor station in Montgomery County, VA (see MVP Asks FERC to Approve Expanded Capacity by Extra 600 MMcf/d). The Roanoke Regional Chamber of Commerce and the Salem-Roanoke County Chamber of Commerce, with a combined membership of over 1,000 businesses, are pushing hard for MVP Boost.
Northeast Gas Pipe Projects Focus on PA, Regional Enhancements - Marcellus Drilling News -- Rising natural gas demand across the U.S. Northeast and adjacent southern and western regions is driving a wave of pipeline projects that will let Marcellus/Utica producers boost output into the 2030s. A fourth installment of RBN's series about gas market dynamics in the Northeast groups the planned expansions into five buckets: Pennsylvania projects, regionwide enhancements, MVP/Transco-tied projects, expanded Ohio capacity, and more distant related efforts. Highlights include National Fuel Gas's Pennsylvania builds, Enbridge's TETCO "Appalachia to Market II" upgrades that add compression and looping, and the MVP Boost Project, which expands Mountain Valley Pipeline from 2 Bcf/d to 2.6 Bcf/d by mid-2028 (via additional West Virginia and Virginia compression).
Golden Pass LNG Flows Rebound Sharply After Early June Lull - Feedgas nominations to Golden Pass LNG have ramped to the highest point to date after a quiet start of the month with multiple days of minimal flows.North America LNG export flows reach 18.35 million Dth, with Sabine Pass and Plaquemines leading US LNG feed gas deliveries. At a Glance:
Latest nominations top May high
Train 1 startup flows remain uneven
Train 2 startup poised to lift demand
Venture Global Inks Another Short-Term LNG Supply Deal - Venture Global has signed another five-year LNG supply deal, this time with German utility EnBW, as it works to market volumes from a rapidly expanding portfolio. At a Glance:
- Fourth 5-year deal for Venture Global
- Others likely under marketing strategy
- Germany working to diversify supplies
Marubeni Acquires EagleRidge in Latest US Shale Move by Japanese Trading House -Japanese trading house Marubeni has acquired privately held EagleRidge Energy II LLC, adding to a growing list of other companies from the country working to diversify energy supplies with US shale assets. Chart showing Japan LNG imports declining from 75.1 Mt in 2021 to 66.3 Mt in 2025, highlighting weakening Japanese LNG demand trends. At a Glance:
- Terms of deal undisclosed
- Expands global gas portfolio
- Follows others in Haynesville, DJ Basin
US LNG Exports Rebound Near Record High Despite Gulf Coast Heat, Maintenance - A look at the global natural gas and LNG markets by the numbers. North America LNG export flow tracker showing US natural gas deliveries to LNG export terminals reaching 18.29 million Dth on June 17, 2026, led by Sabine Pass and Plaquemines LNG.
- 18.4 Bcf/d: Despite a wind down in maintenance impacting pipeline to LNG facilities, feedgas demand is estimated to remain comparatively softer in the next seven days. Nominations to terminals reached 19 Bcf/d on Wednesday, according to Wood Mackenzie data. However, the firm estimated flows pulling back through the coming seven days to average 18.4 Bcf/d. Several Gulf Coast and South Central pipeline constraints, including Natural Gas Pipeline Company of America’s Gulf Coast Mainline remediation and Gulf South compressor work, could affect regional flow flexibility into LNG corridors until the middle of next week. Despite the near-term dip, LNG feedgas demand remains well above year-ago levels.
- 2.73 Mt: US LNG exports rebounded sharply in the week of June 8, rising to about 2.73 Mt, according to Kpler data. The period saw exports rise nearly 30% from the prior week and rivaled the all-time weekly high of 2.76 Mt set in February. Kpler data currently points to a modest pullback in the week of June 15, with exports forecast at roughly 2.55 Mt, down about 6.7% week/week. The surge in US exports has come despite several maintenance events across the Gulf Coast and scorching temperatures throughout the region, which typically decrease efficiency of LNG equipment.
- 325,000 MMBtu/d: Feedgas deliveries to Shell's Elba Island LNG terminal near Savannah, GA slipped roughly 10% Wednesday as scheduled maintenance on the Tennessee Gas Pipeline (TGP) system weighed on flows through the facility's primary supply corridor. Nominations on the Elba Express pipeline fell to about 325,000 MMBtu/d on the June 17 gas day, down from a steady 360,000–365,000 MMBtu/d range that had held for the prior two weeks, according to NGI data. TGP is conducting a crankcase inspection on Station 200 Unit 1B through Friday, with an associated scheduled outage on Segment 204 BH running through the same window, according to a public notice.
- 1.68 Mt: China’s LNG imports jumped to a 24-week high in the week of June 8, with arrivals rising to about 1.68 Mt, according to Kpler data. Deliveries to Chinese terminals rose 45% from the prior week, marking the strongest weekly total since late December as rising temperatures challenged the country’s storage and pipeline imports. US volumes to China fell to just 0.07 Mt, in the week of June 8 after reaching 0.21 million tons a week earlier. The rebound coincided with the first US LNG deliveries to China in more than a year.
US natgas futures rise on lower output, rising flows to LNG export plants --(Reuters) - U.S. natural gas futures climbed about 3% on Thursday on lower output and higher flows to liquefied natural gas (LNG) export plants in recent weeks, which energy analysts believe will cut the surplus of gas in storage over the next month or so. Front-month gas futures for July delivery NGc1 on the New York Mercantile Exchange rose 8.8 cents, or 2.8%, to settle at $3.233 per million British thermal units (mmBtu). The U.S. Energy Information Administration said energy firms added a near-normal 73 billion cubic feet (bcf) of gas to storage during the week ended June 12. That was in line with the 75-bcf build analysts forecast in a Reuters poll and compares with an increase of 97 bcf during the same week last year and a five-year (2021-2025) average increase of 73 bcf for the period. Financial group LSEG said average gas output in the U.S. Lower 48 states fell to 109.4 billion cubic feet per day (bcfd) so far in June, down from 109.7 bcfd in May and a monthly record high of 110.6 bcfd in December 2025. Meteorologists forecast the weather will remain mostly warmer than normal through July 3, which should boost the amount of gas power generators burn to keep air conditioners humming. About 40% of U.S. power generation comes from gas-fired plants. But with slightly cooler weather expected next week, LSEG projected average gas demand in the Lower 48 states, including exports, would fall from 103.7 bcfd this week to 102.5 bcfd next week. Those forecasts were lower than LSEG's outlook on Wednesday. Average gas flows to the nine big U.S. LNG export plants held at 17.1 bcfd so far in June, the same as in May due to lingering spring maintenance at several plants. That compares with a monthly record high of 18.8 bcfd in April. The average for June is up from earlier in the week. The remnants of Tropical Storm Arthur were moving across the U.S. Southeast and had a small 10% chance of re-strengthening into a cyclone after reaching the Atlantic Ocean off the coasts of Virginia and North Carolina over the next week, according to the U.S. National Hurricane Center. Since most U.S. gas comes from shale formations located far from the Gulf of Mexico, analysts have said tropical storms tend to reduce gas demand more than output by knocking out power to homes and businesses and shutting LNG export plants. The remnants of Arthur caused some of the roughly 309,400 customer power outages seen in various states across the country on Thursday, according to power outage tracker PowerOutage.us.
“Top 5” Shareholder in Devon Energy Pushes Company to Sell Itself = Marcellus Drilling News - Devon Energy completed its merger with Coterra Energy just over one month ago, on May 7, paying Coterra $21.4 billion in Devon stock (see Devon and Coterra Complete Merger, Launches $8B Buyback Program). It’s been no secret that one of the larger investors in Coterra and Devon (owning about 1.4% of Devon’s stock), so-called activist investor Kimmeridge, lobbied Coterra prior to the merger to sell off its Marcellus assets (see Activist Investor Declares Coterra Merger Failed – Sell Marcellus). Kimmeridge has some new company. Another so-called activist investor, TOMS Capital Investment Management, recently invested big money in the combined Devon (now a “top 5” investor in Devon) and is pressuring the recently merged company to sell assets and (in a complete surprise), consider selling itself! Just a month after merging!
US strategic oil reserve hits lowest level since 1983 --The U.S. supply of emergency oil has hit its lowest level since 1983, according to newly released federal data. The U.S. Strategic Petroleum Reserve (SPR) is down to 340.3 million barrels, according to the data released on Monday.The last time that levels were this low was 1983, when the Reagan administration was filling up the reserve for the first time. The U.S. established the emergency oil reserve in 1975 after an oil producer embargo against the country triggered an energy crisis. The low SPR level is not a shock — the Trump administration announced in March that it would release 172 million barrels from the reserve over the course of 120 days.Levels were also lowered recently after the Biden administration released 180 million barrels in 2022 after Russia’s invasion of Ukraine sent oil prices spiking. The administration said in 2024 that it had replenished the reserve. The reserve can hold up to 714 million barrels of oil. The U.S. consumes about 21 million barrels of oil on any given day. Tom Kloza, chief oil analyst at Gulf Oil, told The Hill ahead of the data’s release, “I’m not really worried about the SPR,” adding that the U.S. appears to be in decent shape.The news comes as the U.S. and Iran say they’ve reached a deal that’s expected to end the war and allow more ships into the Strait of Hormuz, which has been a key oil shipping chokepoint since the war’s start.
War drains oil inventories to critically low level at US hub (Bloomberg) -- Customers desperate for oil are draining so much of it from giant storage tanks in Oklahoma that producers are having trouble keeping up. Inventories at Cushing, the largest commercial crude oil storage hub in the US, have fallen for eight weeks in a row and now stand at about 20 million barrels, according to government data published Wednesday. That’s the equivalent of less than two days of American crude production, and a level that most traders consider an operational minimum. Even though Washington and Tehran are on the cusp of a peace accord that could fully reopen the Strait of Hormuz, the loss of so much Persian Gulf crude supply during the Iran conflict — equal to about 20% of global shipments — has left global supply chains extremely stretched. The US has stepped in as the seller of last resort to the global oil market during the past three months and has seen its exports surge to a record. But that’s come at the cost of severely depleted domestic buffer against future supply shocks. The broadest measure of inventories in the US - a total that includes not just barrels stored in Cushing but the nation’s strategic stockpiles, plus oil that’s been refined into fuel - is now the lowest according to data going back to 1985. Earlier this week, data showed the US Strategic Petroleum Reserve, created after the 1970s Arab oil embargo, dropped to roughly 340 million barrels, the lowest since 1983. The Trump administration is releasing 172 million barrels from the reserve to help ease fuel prices driven up by the war. Cushing is a massive complex of oil tanks west of Tulsa that’s the most important physical storage hub in the US crude market. It sits at the confluence of dozens of inbound and outbound pipelines that fan out across North America, connecting oilfields in Canada, Texas, North Dakota and elsewhere to Gulf Coast and in Midwest refineries. Its nickname is the “Pipeline Crossroads of the World.” Storage levels at Cushing play a crucial role for traders to determine the value of benchmark US oil futures. West Texas Intermediate futures, in turn, help underpin pricing for millions of barrels of crude traded around the Americas. The slump in inventories at Cushing is set to take a toll on the storage facility. Pulling oil out of tanks when levels fall below the so-called “suction line” of around 20 million barrels is difficult and expensive, and the quality of crude can be compromised by water and sediment. Cushing’s role in global oil markets has diminished since the US lifted its export ban in 2015. Barrels now flow straight from oilfields in Texas and elsewhere to the coast, where they’re shipped to overseas buyers. Still, the drawdown in Cushing crude stockpiles helped support the spread between the nearest two US crude futures contracts. The so-called backwardation in the spread indicates near term supplies in the region remain tight. Refineries in the Midwest, which rely on crude supplies from Cushing, processed a record volume of oil last week, according to the EIA, highlighting that demand is high domestically even if exports wane following a peace deal.
Xcel's gas build-out plans rankle Colorado commissioners - Colorado regulators pushed back on plans by the state’s largest power provider to spend nearly $600 million on gas infrastructure, saying the investments don’t account for a trend towards electrification and could leave ratepayers with unnecessary costs on redundant equipment.Xcel Energy had sought a sweeping set of investments to expand its natural gas network, including pipelines and compressor stations. The $567 million request — which Xcel had proposed to be covered by ratepayer funds — is part of a broader spending plan of nearly $3 billion in infrastructure by the end of the decade.But those planned investments also come as the company is complying with a first-in-the-nation state law designed to wean homeowners and businesses off fossil fuel infrastructure. The Clean Heat Plan requires state gas utilities to cut emissions 22 percent by 2030, compared to 2015 levels, in part by investing in energy efficiency and electric appliances.The Colorado Public Utilities Commission rapped Xcel for not doing enough to consider how the electrification policy might reduce the need for new gas infrastructure. In a 92-page ruling issued earlier this month, commissioners wrote that the company appeared to be requesting ratepayer funds for both a future with more gas and more electrification, potentially leaving customers on the hook for redundant construction.
Great Basin Pipeline Expansion Wins BLM Approval in Nevada — The Bureau of Land Management has approved a right-of-way for Great Basin Gas Transmission Company's Carson Lateral expansion project, allowing the proposed natural gas pipeline expansion to move forward across federal lands in western Nevada. The approval covers public lands in Washoe and Lyon counties and follows completion of federal environmental review led by the Federal Energy Regulatory Commission. FERC issued an environmental assessment for the project in December 2025 and concluded that the expansion would not significantly affect the human environment. As a cooperating agency, the BLM participated in the review process and concurred with FERC's findings. The agency's decision authorizes Great Basin Gas Transmission to expand its Carson Lateral pipeline system across public lands administered by the BLM. The project is currently subject to a 30-day administrative appeal period. According a July 2025 FERC filing, the 2026 Great Basin Expansion is designed to increase firm natural gas transportation capacity by 8,129 dekatherms per day (Dth/d) to serve growing demand from existing customers in northern Nevada and northern California. The project includes construction of approximately 2.3 miles of new 20-inch-diameter pipeline looping alongside the existing Carson Lateral in Washoe County and replacement of approximately 2.4 miles of existing 10-inch-diameter pipeline with new 20-inch-diameter pipe in Lyon County.
Court nixes oil and gas lease sales in sage grouse country - A federal judge has ruled for a third time that the Interior Department failed to protect greater sage grouse habitat when it issued oil and gas lease sales spanning more than a million acres of public lands in Wyoming, Montana and the Dakotas. On Friday, Chief Judge Brian Morris of the U.S. District Court for the District of Montana found that Interior failed to prioritize development outside of the bird’s habitat, as required under agency policy established in 2015. He ordered the lease sales to be tossed out. The ruling resolves the third phase of litigation before Morris that challenged a series of lease sales held in the Great Plains from 2019 and 2020, as the first Trump administration sought to expand domestic oil and gas drilling. The new leasing came after the Obama administration introduced protections for sage grouse on public lands in an effort to keep Interior from having to list the bird as endangered. Morris, an Obama appointee, found Interior failed to consider how oil and gas development on the leases would fragment key sage grouse breeding grounds. While he acknowledged the economic consequences of the ruling, Morris also said the failure by Interior’s Bureau of Land Management to avoid development in key habitat warranted vacatur, or a decision to scrap the lease sales.
EDF Files Lawsuit Against Trump Rollback of Onerous EPA Methane Regs -- Marcellus Drilling News --- In early April, the EPA revised certain Biden-era oil and natural gas regulations, specifically aspects of the 2024 Clean Air Act rules (OOOOb/c, known as “Quad O”), to reduce compliance burdens and lower energy costs (see EPA Issues Final Quad O Rule Overturning Biden-Era Onerous Regs). Key revisions include extending temporary flaring allowances from 24 to 72 hours and adjusting Net Heating Value (NHV) monitoring requirements, both of which are expected to reduce unnecessary testing without affecting emissions. The so-called Environmental Defense Fund (EDF) sued the EPA last week to force the agency to keep the onerous Biden regs in place.
California Natural Gas Prices Soar as Traders Eye EnergÃa Costa Azul LNG Ramp-Up -- Natural gas spot prices in Southern California are rallying despite comfortable inventories, relatively benign weather and fierce competition from renewables in the state’s electricity mix.NGI chart showing SoCal Citygate forward basis premiums through 2028, with winter natural gas basis peaking above $2/MMBtu. At a Glance:
SoCal prices at highest since January
ECA seen tightening regional market
Prices rallying despite renewable competition
Questerre Advances Commercialization of HCCO Oil Shale Technology After Successful Brazil Test -Questerre Energy Corporation has reported successful results from a commercial-scale test of its patented HCCO oil shale technology at the PX Energy facility in southern Brazil. The trial, conducted for the first time in a full commercial-sized vessel, confirmed the engineering and technical viability of the process beyond earlier lab-scale reactors. The company now plans a longer-duration test to define operating parameters for continuous use and intends to deploy the technology at PX Energy to cut internal fuel oil consumption and improve project economics. Questerre is also incorporating the findings into the design of a small-scale commercial demonstration plant, advancing its strategy to commercialize oil shale resources under its licenses and potentially strengthening its position in next-generation hydrocarbon technologies. Questerre Energy Corporation holds a significant natural gas discovery in the Quebec Utica shale, considered one of the most important undeveloped gas resources in Eastern Canada, and emphasizes clean technologies and transparency in the energy transition.
A lot riding on gas-rich Utica shale in Quebec - Petroleum News A stable of juniors is looking to a couple of thoroughbreds to lead the field to riches in what has emerged as one of the best resource bets in North America. Talisman Energy and Forest Oil are rolling out plans for various shale properties, with the province of Quebec suddenly thrust into the spotlight. Wellington West Capital Markets analyst Kim Page said the presence of majors gives weight to the Utica and Lorraine plays in the St. Lawrence Lowlands. If the play becomes commercially viable, “the return opportunity … is very high,” he said. Vic Vallance of Fraser Mackenzie, Northern Rivers Capital Management hedge fund manager Alex Ruus and Sprott Asset Management Chief Executive Officer Eric Sprott are all hitching their wagons to the juniors. But it may take Talisman and Forest to establish that new fracturing technologies can unlock the full potential of the shales — something they are gearing up to tackle. Forest focusing onshore Having pulled out of the Gulf of Mexico to focus on the “repeatable, low-risk opportunities” of onshore North America — the strategy that has made EnCana so successful — Forest is already buoyed by results from two vertical wells in the Utica shale, which have tested at 1 million cubic feet per day. Based on its holdings of 339,000 gross acres and 270,000 net acres, Forest has rated its net unrisked potential at 4.12 trillion cubic feet, with two prospective horizons, and access to major markets in the northeastern U.S. Forest, which has several junior partners in the region, said its Quebec assets may hold as much as 4 tcf and describes the Utica shale as having similar rock properties to the Barnett shale in Texas. It has scheduled three horizontal wells this summer, is targeting initial production in 2009 and plans to start full-scale drilling in 2010. Talisman, in deciding to jettison several global assets and concentrate heavily on evaluating its unconventional resource potential in North America, could spend up to C$130 million over the next 18 months on its Utica and Lorraine holdings alone. It plans to test three to four pilot areas, drilling six vertical and 10 horizontal wells, as it aims to enter the development phase about mid-2010. Once it has drilled four wells by early 2009 it expects to have 760,000 net acres on land that has an estimated 48 tcf of original gas in place at 75-350 billion cubic feet for every 640 acres. Well costs at depths of 5,000-9,000 feet are calculated to cost C$5 million each. The “ponies” in the field include Gastem, Questerre Energy, Junex, Altai Resources, Epsilon Energy and Petrolympic, all of which have posted staggering market gains on what were mostly penny stocks entering 2008. Sprott Asset, which holds 14 percent of Gastem, 15 percent of Questerre and 13 percent of Altai, started to build those interests late in 2007. Northern Rivers owns 11 percent of Gastem through its four funds — a fact that Ruus said “reflects how bullish we are.” When Forest started drilling on Gastem’s property last summer, he “became convinced that there was probably a commercial discovery” in Quebec. Page initiated coverage of Gastem, Questerre and Junex in late May, confident the most prospective area of the Utica play has the potential for about 25 tcf of recoverable resource. He believes Junex, with 1.2 million acres making it the largest land-holder in the Lowlands, could be sitting on 1.25 tcf of gas. However, Questerre Chief Executive Officer Michael Binnion has injected some cautionary notes, suggesting the engineering and commerciality still pose risks and are the main issues that the Talisman and Forest programs will address over the next 18 months. “We have a play that in terms of its potential value is currently being risked as a full exploration play,” he told a Calgary investor conference. “We think we’re past the exploration phase, but we certainly are not into the proven commerciality phase.” Binnion said much more information is needed on the recovery rates per well and what the decline curve will look like.
Shell signs deal with Venezuela for 7 Tcf natural gas development | UpstreamThe Venezuelan government has signed five contracts with Shell that will give the European supermajor rights to operate the giant Loran natural gas field. The agreements formalise Shell’s participation in Loran, a cross-border reservoir shared with Trinidad & Tobago that is estimated to hold 7 trillion cubic feet of natural gas, while also covering oilfield expansion and efforts to reduce gas flaring. “For the first time, the Hydrocarbons Law, which was recently reformulated and amended, is allowing us these forms of negotiations and flexible business agreements where we will also boost production, and where we can make better use of resources for the people of Venezuela,” said Venezuela’s interim president Delcy Rodriguez. She emphasised the strategic step seeks to enhance the country’s energy capabilities through direct collaboration with key international players, thus ensuring concrete progress in the infrastructure needed for hydrocarbon extraction in the Loran field. Loran is expected to play a central role in Venezuela’s offshore gas ambitions, as it will be developed along with the Dragon project, also involving Shell, in Trinidad & Tobago, estimated to hold 4.2 Tcf. In addition to Loran, Shell also agreed to a technical alliance to support procurement and output expansion at fields in Monagas North, and to a separate pact to buy equipment and parts to reduce gas flaring. The agreements move Shell to the top of Venezuelan state-owned energy company PDVSA’s list of partners for key oil projects. UK supermajor BP is also set to participate in the Loran gas field and in the neighbouring Cocuina-Manakin offshore gas project, according to separate deals with the Venezuelan government.
‘A bit of FOMO’: Oil companies give Venezuela a second look amid Mideast chaos - President Donald Trump’s policy misfires in the Middle East are having one unexpected beneficiary — his policy goals in Venezuela. Oil companies large and small are showing new interest in committing to drill in Venezuela, after months of reluctance following the Trump administration’s call for them to do so in the wake of the U.S. removing its former president, industry lawyers and consultants familiar with the issue said. One of the largest deciding factors, they said, is the newly exposed fragility of the Middle East as an energy supplier that the fighting between the U.S., Israel and Iran have put on full display. “You see this view industry-wide, right or wrong, that there’s a long-term disruption going on all over the market,” said Jason Bennett, global projects director at law firm Baker Botts. Venezuela is “looking pretty good right now, despite their historical problems.”While the White House has in the past several months highlighted nonbinding agreements that some smaller companies have signed to develop Venezuelan oil fields, industry officials are saying they expect big contracts to land soon. Formal, binding deals would be a big win for the White House, which has tried with little luck so far to cajole the industry to get into Venezuela even before it captured the country’s former president, Nicolás Maduro, in January. Larger international companies are now giving Venezuela — and its South American neighbor Argentina — a closer look as oil supply out the Strait of Hormuz remains all but shuttered, Bennett said. Trump announced a peace deal between the U.S. and Iran on Sunday that he said would “fully authorize the toll-free opening” of Hormuz.The Venezuelan government’s reforms to its laws regulating the industry are still not perfect but are going enough in the right direction to assuage the worst fears of U.S. industry executives, Bennett added.Companies are in discussions with White House officials about committing to develop specific oil fields in a country with the world’s largest crude reserves. The mood is becoming more serious as companies are overcoming their earlier worries about working with Venezuela’s government and oil prices remain higher than the $67 a barrel they were before the fighting with Iran started, the industry officials said. The Venezuelan government has started to hold aside fields for companies that sign non-binding memorandums of understanding, essentially allowing those companies to informally claim areas as long as their deal-making continues, people familiar with the talks said. “I’ve signed up probably as many new clients over the last few weeks than I did when things first ‘opened up,’” said an industry lawyer whose clients have talked to the White House about the possibility of drilling in Venezuela and who was granted anonymity because he wasn’t authorized to speak to the press.“Fields and opportunities are essentially getting ‘allocated’ in the engagement with the White House and with PDVSA,” this person said, referring to Venezuela’s state-run oil company.“Certainly the diversity [of operations] outside of the Middle East is a factor, especially as the industry is realizing that the uncertainty in the Persian Gulf may linger much longer than originally expected.”White House spokesperson Taylor Rogers said in a statement that Trump was “right” that oil companies would flock back to Venezuela. “The Trump administration is successfully fostering productive relationships with the Venezuelan authorities while facilitating much-needed changes to the country’s laws and contracts,” Rogers said. “Now, thanks to the President, companies are rushing back to invest billions, Venezuela’s oil exports have jumped to the highest levels since 2018, and oil is flowing into the United States.”Jarrod Agen, executive director of the White House’s National Energy Dominance Council, said at POLITICO’s Energy Summit last week that Venezuela is moving from the MOU phase to binding contract phase. Small independent firms like Hunt Oil, HKN Energy and Crossover Energy have signed MOUs, essentially pledging to keep discussing the possibility of more permanent deals to drill in a country with the world’s largest oil reserves but also a history of appropriating industry assets. Companies are also growing fearful of missing out on prime Venezuelan real estate as the Trump administration and Caracas are promising fields to companies who sign memorandums of understanding, the industry lawyer said.
Venezuela flags environmental risk from Trinidad & Tobago oil spill - Venezuela has raised concerns over an oil spill it says originated from neighbouring Trinidad and Tobago and has now reached its coastline, warning of potential environmental and economic impacts on marine ecosystems and coastal communities. In a statement Venezuela’s foreign ministry said the spill, identified through satellite imagery, is placing fragile marine environments at risk and disrupting fishing activity in affected areas. Caracas urged Trinidad and Tobago to take immediate action to prevent further incidents and to provide full transparency regarding the cause, scale and consequences of the spill. “There is a threat to the marine ecosystems and fishing activities and coastal communities,” the ministry said, calling on Port of Spain to assume its responsibility and implement urgent containment measures. The Venezuelan government did not specify the exact locations impacted but said the presence and movement of pollutants had been confirmed via satellite monitoring. It has also demanded clarification from Trinidad and Tobago, amid rising diplomatic attention over the incident. The latest allegations echo a similar episode in February 2024, when a vessel incident in Trinidad and Tobago’s waters led to oil pollution spreading toward Venezuelan territory, raising broader concerns about spill response coordination in the region.
LNG Market Outlook Still Cloudy Despite Preliminary Peace Deal in Iran --A preliminary agreement to begin negotiating the end of the Iran war has done little for consensus about how the global natural gas market could emerge from the conflict, and when it may return to normal. At a Glance:
- Early peace deal lacks clarity
- Safe passage via Hormuz questioned
- LNG demand dented
TTF, Asian LNG Prices Tumble as Hormuz Reopening Hopes Build - Global LNG and natural gas prices dipped sharply Monday as traders reacted to a major step in a peace resolution between the US and Iran and the opening of the Strait of Hormuz.Map of Persian Gulf LNG import and export terminals showing major liquefied natural gas infrastructure across the Middle East. The graphic highlights LNG export facilities in Qatar, the world’s largest LNG exporter, along with terminals in the United Arab Emirates and Oman. LNG import terminals are identified in Kuwait, Bahrain, the UAE and other Gulf states. The map illustrates key LNG trade routes through the Persian Gulf and Strait of Hormuz, a critical global energy chokepoint for natural gas exports to Europe and Asia. At a Glance:
Qatari LNG export fears fade
US natural gas reacts to weather
Shipping normalization remains key risk
Europe Heat Supports LNG Demand Outlook as Mild US, Asia Forecasts Cap Weather Risk -Weather signals for key LNG and natural gas markets continue to split as late-June heat in Europe offers demand support against milder Asian and US forecasts.Europe and Asia weather data show trailing 365-day temperatures in Northwest Europe, Beijing, Seoul and Tokyo versus seasonal norms through June 2026. At a Glance:
Storms raise Gulf Coast shipping risk
Asia’s cooler shift limits upside
Europe heat supports LNG demand
Ichthys LNG Workers Endorse Deal to End Strike, Resume Normal Operations - Workers at Ichthys LNG in Australia have reached a deal with Japan’s Inpex to end labor strikes at the facility that started earlier this month and curbed output at a time when global supplies have been cut significantly by conflict in the Middle East. At a Glance:
- Strikes cost $200 million
- Output curbed
- Normal loading resumes
Oil spill response underway after vessel grounding in the Philippines - Authorities in the Philippines have intensified containment and cleanup efforts following an oil spill caused by a cargo vessel that ran aground along the shoreline of Barangay La Virgen Milagrosa in Badoc, Ilocos Norte on 8 June. As stated, personnel, government workers and volunteers have deployed absorbent pads and oil spill booms to contain pollution leaking from the grounded vessel, identified as MSCI 1. Following a meeting of the multi-agency oil spill response team, Provincial Environment and Natural Resources Officer Victor Dabalos instructed the vessel’s manager to immediately seal the engine leak to prevent further environmental damage and protect the livelihoods of local fishing communities. According to Dabalos, the vessel departed Omnico Port in Currimao, Ilocos Norte, carrying aggregates bound for Calayan, Cagayan province. The vessel was forced to undertake an emergency beaching on 8 June amid adverse weather conditions. Fortunately, all 15 crew members were safely evacuated and were reported to be in good condition. Inspections carried out after the grounding confirmed the presence of an oil leak from the vessel’s engine compartment, while reserve fuel tanks remained intact and fully sealed. Responders detected a strong petroleum odour at the site and promptly deployed two segments of containment boom to limit the spread of pollutants. The Philippine Coast Guard (PCG) reported on 9 June that approximately 100 litres of oily water mixture had been observed along a 15-metre stretch of shoreline near the incident site. Authorities also noted that previously deployed containment booms had shifted due to prevailing sea conditions. In response, additional absorbent booms and pads were deployed and recovery operations were launched. Contaminated absorbent materials have been collected and stored in drums for proper disposal. A coastal cleanup operation remains underway around the grounding site, while the Department of Environment and Natural Resources of the Philippines (DENR) continues to assess the environmental impact of the spill. The agency is conducting field inspections of affected coastal habitats, coordinating debris management activities and monitoring potential impacts on marine ecosystems and local fisheries. The response team comprises the Philippine Coast Guard (PCG), Philippine Marines, Philippine National Police, Bureau of Fire Protection and the local government of Badoc.
Coast Guard: Oil spill in Ilocos Norte contained - The oil spill caused by a cargo vessel that ran aground in the sea of Badoc, Ilocos Norte has been successfully contained through the coordinated efforts of government agencies, local authorities, and community volunteers, the Philippine Coast Guard (PCG) reported. Ensign Aeron Paul Sotiangco, deputy commander of the Coast Guard Station Ilocos Norte, said the cargo vessel LCT/MV MSCI 1 was enroute from Omnico Port in Ilocos Norte to Calayan, Cagayan, carrying aggregates and 15 Filipino crew members when it was forced to conduct an emergency beaching on June 8 due to rough seas and adverse weather conditions. “The captain decided to perform an emergency beaching to prevent the vessel from capsizing and ensure the crew’s safety. No fatalities were reported,” Sotiangco said. Authorities traced the oil spill to excess oil from the vessel’s engine room, noting that the ship’s oil reserve tank remained intact and securely sealed. Following the incident, the PCG, local government units, and residents immediately launched containment operations, deploying spill booms, absorbent pads, and other materials to prevent the oil from spreading further. The cleanup effort resulted in the collection of approximately 80 liters of oil-contaminated waste on a 15-meter stretch of shoreline. As of June 11, authorities reported that coastal waters in the affected area were visually free of oil sheen, and no fuel odor was detected, indicating that containment measures had been effective. Despite the successful cleanup, water activities in the area remain prohibited as a precaution while monitoring and environmental assessment activities continue. Meanwhile, the Municipal Disaster Risk Reduction and Management Office (MDRRMO) of Badoc said assistance has been extended to 228 affected families to help mitigate the impact of the incident on their livelihood. Medical consultations were also conducted to address possible health concerns related to the spill. The PCG remains in close coordination with the vessel’s shipping company, which has hired a salvor firm to recover and relocate the stranded vessel. Underwater inspections and recovery operations are expected to begin once sea conditions improve.
Oil executives are sounding the alarm over dwindling stockpiles --President Trump’s deal with Iran is set to reopen the Strait of Hormuz, but how quickly it can arrest a steep decline in oil stockpiles will determine the trajectory of energy prices in the coming weeks. For more than 15 weeks, the U.S. and other countries around the world have had to dip into oil tanks, salt caverns and strategic reserves to make up for the millions of barrels of oil trapped behind the strait. Now, the stocks are nearing critical levels, and energy executives say without an influx of more oil, prices will have to surge to stop the run on supplies. Mike Wirth, chief executive of Chevron, has repeatedly warned on television that the supply crunch will soon manifest itself around the world. Neil Chapman, the No. 2 at Exxon Mobil, has said the U.S. is approaching “unheard-of inventory levels.” Other executives, such as Wil VanLoh, of Quantum Capital Group, say “it’s going to get ugly.” “The world has never had to destroy 10 million barrels a day of oil demand,” VanLoh added, referring to the crude production not making it to global markets. Relief could be on the way. The U.S. and Iran agreed Sunday to a deal—set to be signed Friday in Switzerland—that would quickly reopen the strait, through which 20% of the world’s petroleum typically passes. But even if that deal holds, it would likely take months for the oil market to return to normal. Since late March, the U.S. has drawn about 66 million barrels of oil from its Strategic Petroleum Reserve, a system of salt caverns on the Gulf Coast that was created in 1975 after the Arab oil embargo. The Trump administration authorized the release of 172 million barrels—and if drawdowns continue at the current pace, that allotment could dry up in early September. The current release—if fully exhausted—is set to bring inventories down to 243 million barrels, a historically low level. Drawing further from the stocks after that would limit the U.S.’s ability to respond to new oil disruptions on the world’s stage, or natural disasters such as hurricanes that can damage fuel supply chains. The SPR peaked at more than 700 million barrels in 2009. Commercial stocks are also under stress. At the key storage hub in Cushing, Okla., inventories have dropped to 21 million barrels, down roughly 1 million barrels in the latest week. At roughly 20 million barrels, tank operators begin running into a variety of complications. Tanks typically have to have 10% to 15% of their capacity in storage to guarantee smooth operations. That is in part because the outlet allowing oil to flow is set at that level and sludge builds up at the bottom, said John Auers, managing director of refined fuel analytics at RBN Energy, part of analytics firm Novi Labs. “Whenever you get to tank bottoms, the whole operation gets bogged down,” he said. He cautioned the 20-million-barrel limit isn’t hard and fast, and operators would likely try to keep pumping crude out of the facility—albeit at a slower rate. Chapman, a senior vice president at Exxon, said physical oil prices could rise as high as $150 or $160 a barrel once the limits at global hubs are hit. “You can debate whether that’s going to hit those really low levels in two weeks or three weeks. But once you get to that point, then you’ll see prices shoot up,” he said at a conference in New York. Even if the strait soon reopens, Trump said steps will be needed to ensure mines have been removed. Oil shippers and their insurers are expected to remain cautious about traveling through the waterway. It would likely take even longer for the U.S. and other countries to replenish their depleted oil inventories, keeping prices elevated. U.S. oil prices fell 4.1% to $81.42 a barrel on Sunday evening shortly after trading opened. They have fallen more than 25% from early April, when they approached $113. Prices at the pump have fallen, too. Energy Secretary Chris Wright told The Wall Street Journal last week that Trump has been briefed on the inventory situation and the administration doesn’t foresee a jump in energy prices. “I don’t think so…we got a challenge, but I think we’re solving the challenge,” he said. At a Bloomberg event on Friday, Wright said 7 million barrels a day of oil and refined products were making it out of the strait with the help of the U.S. military. Wirth, speaking at that same event, seemed skeptical of that claim. “Our view would be it’s probably not quite that much,” he said.
OPEC’s Oil Demand Bet Is on India, Not Europe Every year, OPEC releases a long-term outlook that says oil demand will keep growing. Every year, critics roll their eyes. This year, OPEC doubled down. In its World Oil Outlook 2026, the producer group said global oil demand will climb from 105.1 million barrels per day in 2025 to 113.3 million bpd by 2030 and top 124 million bpd by 2050. More importantly, OPEC says there is still no peak oil demand in sight. That's a bold claim in a world where EV sales dominate headlines, governments continue talking about net-zero targets, and energy transition advocates have spent years forecasting oil's slow decline. But buried inside OPEC's latest outlook is an argument that's harder to dismiss than the forecast itself. The organization is essentially saying that the peak-demand crowd has become obsessed with what is happening in rich countries while ignoring what is happening almost everywhere else. Much of the conversation around oil demand revolves around EV adoption in Europe, California, and China. OPEC's outlook is based on a much simpler observation: billions of people outside the OECD still want cars, air conditioning, air travel, consumer goods, and reliable electricity. India alone is expected to add more than 8 million barrels per day of oil demand by 2050. Africa, the Middle East, Latin America, and the rest of developing Asia are expected to contribute most of the remaining growth. In other words, OPEC isn't betting on Berlin, it's betting on Bangalore. The report also throws cold water on another favorite assumption of the transition narrative: that electric vehicles will quickly eliminate oil demand. OPEC expects EV adoption to continue growing rapidly, but still sees internal combustion vehicles accounting for roughly three-quarters of the global vehicle fleet in 2050. Cars aren't even the biggest story. Petrochemicals, aviation, trucking, shipping, data centers, manufacturing, and growing middle classes all require energy. And a lot of it. Meanwhile, OPEC now sees U.S. shale growth slowing significantly and approaching a plateau around 2030, removing one of the biggest sources of supply growth the market has relied on for the past decade. None of this guarantees that OPEC is right. The organization has every reason to be optimistic about oil's future. But after years of predictions that demand was about to roll over, the world keeps consuming more oil, not less. At some point, it becomes fair to ask whether peak demand keeps getting pushed into the future because it was never as close as everyone thought.
Crude oil prices plunge 5% after US-Iran peace deal: What it means for India - The Tribune -Global crude oil prices fell by almost 5 per cent on Monday after the announcement of a tentative peace deal between the United States and Iran that is expected to reopen the Strait of Hormuz, one of the most vital oil shipping routes in the world. The development led to a significant correction in oil prices and eased fears of supply disruptions in West Asia. Brent crude, the global benchmark, plunged to about $83 per barrel and US West Texas Intermediate (WTI) crude dipped below $81 per barrel, as traders wiped out the geopolitical risk premium built into oil prices during months of turmoil. Approximately one-fifth of the world’s oil supplies pass through the Strait of Hormuz, and the deal is expected to restore the flow of gas and oil exports through this route. Earlier, the fears of potential disruptions in the Strait of Hormuz could limit global energy supplies drove oil markets to soar, reaching as high as $120 per barrel during the initial phases of the US-Iran war in March. However, the latest peace agreement indicates a gradual normalisation of oil exports from the region. The agreement reportedly calls for the reopening of the Strait of Hormuz as well as more extensive talks to put an end to hostilities and restore trade. The sharp drop in oil prices was caused by traders reducing their bets on higher crude prices as the probability of a prolonged supply disruption subsided. Over 85 per cent of India’s crude oil requirements are met by imports, making it the third-largest oil user in the world. The country’s economy, inflation, fiscal health, and company earnings are all directly impacted by changes in the price of crude oil globally. Every persistent drop in crude oil prices improves India’s current account balance, reduces pressure on the currency, and cuts the country’s import bill. On the other hand, an increase in oil prices often results in higher trade imbalances and inflation. India’s top import is crude oil. The country spends less foreign exchange on energy imports as prices around the world drop. The current account deficit (CAD), which measures the difference between the imports of a country and exports, can be reduced with a lower oil import bill. In general, a lower CAD strengthens the currency and reduces reliance on inflows of foreign capital. Refiners and oil marketing firms are less inclined to demand US dollars when oil import bills are lower. The Indian rupee’s value in relation to the US dollar may stabilize as a result. In conclusion, a stronger or more stable rupee reduces the cost of imports and contributes to the stabilization of imported inflation. Additionally, currency stability encourages capital inflows into Indian financial markets and boosts investor confidence. On Monday’s opening trade, the rupee gained 43 paise.
Iran Peace Deal Sends Oil Prices to March Low | NewsGhana -Oil prices fell to their lowest since March on Monday as the United States and Iran announced a deal to end the war and reopen the Strait of Hormuz. Brent crude fell 4.7 percent to $83.25 a barrel in early Monday trading, while West Texas Intermediate (WTI) dropped 5.1 percent to $80.53. Both contracts hit their lowest levels since March 10, extending a slide that began after President Donald Trump posted on Truth Social on Sunday that “The Deal with the Islamic Republic of Iran is now complete.” He said the strait would open without a toll system and that the United States would end its naval blockade of Iran. An official signing ceremony is set for Friday in Switzerland. Pakistan’s Prime Minister Shehbaz Sharif said the two sides had declared an immediate and permanent termination of military operations, while Iran’s deputy foreign minister confirmed the initial agreement. Trump’s announcement nonetheless stops short of a final signed deal, and analysts cautioned that meaningful implementation risks remain before markets can treat it as certain. The scale of the disruption the agreement aims to end has been severe. The International Energy Agency estimated the strait’s closure caused a daily global oil shortfall of approximately 14 million barrels. About a fifth of the world’s oil supply had passed through the waterway before tanker traffic plunged in early March, when Iran attacked shipping in response to United States and Israeli strikes. Brent climbed above $114 a barrel in the weeks that followed, a rise of more than 40 percent from pre-war levels. The prospect of Iranian crude returning to global markets deepened Monday’s price declines. Analysts estimate Iran could restore more than one million barrels a day of exports if sanctions are lifted and production facilities return to full capacity. That supply would add to increases already being staged by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+), which has been raising output targets in recent months, shifting market concern from shortage toward the possibility of oversupply. The impact extended well beyond the oil market. Japan’s Nikkei 225 rose 5.5 percent on Monday morning, South Korea’s Kospi jumped 5.7 percent and Australia’s benchmark index gained about 1.5 percent, with equity investors pricing in the prospect of lower fuel costs supporting growth. The benefits of a reopened strait reach further than Iran’s own exports. Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar all route substantial crude volumes through the waterway. Restoring normal shipping is expected to reduce freight insurance premiums, ease supply chain delays and lower fuel costs in regions that have absorbed sustained energy price pressure since March, including economies across Africa, Asia and Europe. Implementation, however, remains ahead of confirmation. The formal signing has not yet taken place, political opposition within both countries could complicate the process, and earlier ceasefire attempts in the conflict collapsed before holding. Any breakdown before Friday’s ceremony could rapidly reverse the week’s gains and reignite the volatility that has gripped energy markets since February.
Oil Slips to 3-Month Low on US-Iran Peace Deal Announcement (DTN) -- Oil futures slumped to their lowest since early March Monday morning after the U.S. and Iran announced they had agreed to an interim deal to end the war and reopen the Strait of Hormuz. By 7:30 a.m. ET, ICE Brent for August delivery was down $4.46 to trade near $82.87 bbl, and NYMEX WTI for July delivery fell $4.70 to $80.18 bbl. Downstream, NYMEX ULSD futures for July delivery retreated $0.1064 to $3.2980 gallon, and front-month NYMEX RBOB futures plummeted $0.1180 to $2.9318 gallon. The U.S. Dollar Index softened by 0.22 points to 99.525 against a basket of foreign currencies. U.S. President Donald Trump on Sunday said that a deal with Iran was "now complete" and announced a reopening of the Strait of Hormuz as well as the immediate lifting of the U.S. blockade on Iranian maritime trade. The President clarified in a second statement that flows through the Strait of Hormuz will resume once both parties sign the deal on Friday in Switzerland. The memorandum of understanding mediated by Islamabad extends the ceasefire for another 60 days to allow for negotiations about yet unresolved issues like Iran's nuclear program and the lifting of sanctions. Hundreds of laden tankers continued to idle in the Persian Gulf as shippers were seeking clarity on a timeline for safe passage through the Strait of Hormuz, the blockade of which has cut the world off almost a fifth of petroleum liquid supply for now three and a half months. The largest oil supply disruption in history caused oil prices to rally and global inventories to dwindle from five-year highs to the lowest in a decade. Iranian news outlets, meanwhile, reported that the deal granted Iran 30 days to reopen the strait. The timing of the restart of flows is crucial given rapidly shrinking oil and fuel stockpiles. The International Energy Agency has repeatedly warned that inventories could hit a "red zone" by the July-August period should traffic not be restored, jeopardizing fuel supply safety and raising shortage risks. While markets can expect some immediate respite once the shipping disruption ends, oil supply will take months to approach pre-war levels. In addition to hurdles such as damaged energy infrastructure and a shortage of empty tankers, production at many oil fields forced shut by the lack of takeaway capacity will be slow to ramp up.
Oil settles at three-month low after Trump says deal signed to end Iran war (Reuters) - Oil prices settled down $4 a barrel to a three-month low on Monday after President Donald Trump said the United States and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz. Brent crude futures settled down $4.16, or 4.76%, to $83.17 a barrel and U.S. West Texas Intermediate settled at $80.75, down $4.13, or 4.87%. Both contracts erased a chunk of the war-risk premium they had accumulated over the last few months, with Brent and U.S. crude futures closing at their lowest levels since March 4. The memorandum of understanding has been signed by Trump and Vice President JD Vance and Iranian parliament Speaker Mohammad Bagher Qalibaf, one U.S. official said. An official signing ceremony for the agreement is due to be held on Friday in Geneva. Iran's semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements. "With a wall of oil supply very possibly on the way, the selloff looks justified," Iran lowered the official selling price for its light crude oil grade for Asian buyers to $7.15 a barrel above the Oman/Dubai average for July, the state-owned National Iranian Oil Company said on Monday, compared with the previous month's premium of $13 a barrel. Citi on Monday cut its average Brent crude forecasts to $75 and $70 per barrel for the third and fourth quarters of 2026, respectively, citing expectations that the Strait of Hormuz trade flows will resume and normalize. The world has lost millions of barrels of oil and gas supply since the war closed the Strait of Hormuz, a chokepoint for a fifth of the world's oil and liquefied natural gas supplies, for more than three months. It is unclear how quickly those barrels will return to market once the waterway is opened. "Getting the vessel supply chain in place and the restarts all running smoothly within the Arab Gulf will be tough. And some vessel owners will be hesitant to ballast towards the Arab Gulf until we hear from insurers," Investors are also watching cautiously how quickly Middle Eastern producers can resume oil production and exports following damage from the war, and whether more ships will enter the region. More than 14 million barrels per day of oil output is shut, or about 14% of world demand, according to the International Energy Agency's . A full return to pre-war production and refining levels is likely to take weeks, months or even years, industry officials say. Lower oil inventory levels, a slower process to restart production and the refilling of strategic oil inventories should support oil prices in the longer term, Stockpiles in the world's largest economies are headed toward their lowest levels since at least 2003, due to the lost Gulf output, according to the U.S. Energy Information Administration. Stocks of crude oil in the U.S. Strategic Petroleum Reserve fell to 340.3 million barrels, the lowest level since 1983, according to data from the Department of Energy on Monday. Inventories in the government's emergency stash fell by 8.9 million barrels, the third-steepest draw on record. The drawdowns are a part of a U.S. agreement to release 172 million barrels from the facility. Israeli Defense Minister Israel Katz said the military would remain in security zones in Lebanon, Syria and Gaza indefinitely in order to protect the border and Israeli settlements. The fate of Iran's nuclear program, another thorny issue, will also be addressed in those later talks, sources previously told Reuters. E4 nations, which include the UK, France, Germany and Italy, said on Sunday the countries were prepared to lift sanctions on Iran in response to steps on its nuclear program.
Oil Prices Plunge to Three-Month Low – Iran Wire -- Oil prices fell by another 4% on Tuesday, hitting their lowest level in three months. The drop comes as markets simultaneously evaluate the outlook for resuming oil supplies through the Strait of Hormuz, weak physical demand, and the lack of clear details surrounding the initial agreement to end the war with Iran. According to Reuters, Brent crude futures fell by $3.20, or 3.85%, to $79.97 a barrel by 12:53 GMT, approximately 3:30 p.m. Tehran time. The benchmark had earlier dropped to as low as $79.61, its lowest level since February 22, slipping below the $80 mark for the first time since that date. U.S. West Texas Intermediate (WTI) crude also dropped by $3.52, or 4.36%, to $77.23 a barrel. Its daily low hit $76.88, marking its lowest level since March 11. Before the outbreak of the war on February 28, prices for both Brent and WTI crude had been hovering within the $65 to $70 range. Oil had already plunged nearly 5% on Monday after Donald Trump announced a tentative agreement to end the war with Iran, even though the specific details of the deal have not yet been made public. In a related statement, Fatih Birol, executive director of the International Energy Agency (IEA), emphasized that the "unconditional" reopening of the Strait of Hormuz is vital to preventing further shocks to the energy market, noting that the move could help stabilize trading. He also welcomed the understanding between Iran and the United States, describing it as "very good news." To manage the crisis, hundreds of millions of barrels of oil have already been released from the emergency stockpiles of the 32 IEA member countries, with approximately 164 million barrels drawn from these reserves in May alone.
Oil Prices Extend Decline on Hormuz Reopening Hopes (DTN) -- Oil futures slid to the lowest in more than three months Tuesday morning, extending the decline from the previous trading session on growing signs that shut-in Middle Eastern oil flows may soon return. By 8:30 a.m. EDT, ICE Brent for August delivery was down $3.00 to trade near $80.17 bbl, and NYMEX WTI for July delivery fell $3.09 to $77.66 bbl. Downstream, NYMEX ULSD futures for July delivery slid $0.1030 to $3.1635 gallon, and front-month NYMEX RBOB futures retreated $0.0487 to $2.8985 gallon. The U.S. Dollar Index remained little changed, up 0.035 points to 99.410 against a basket of foreign currencies. U.S. and Iranian officials are set to sign an interim deal in Switzerland on Friday, which would reportedly end the Iranian blockade of the Strait of Hormuz. Tehran on Tuesday confirmed that the U.S. blockade of Iranian ports is being lifted, and vessel tracking data showed several Iranian oil tankers moving toward the Gulf of Oman. Hundreds of laden oil tankers are idling in the Persian Gulf, but few have so far attempted to traverse the chokepoint following Sunday's peace deal announcement as shippers were waiting for more clarity about navigational safety, including the clearing of Iranian sea mines. A wave of crude oil ready to flow once a deal is signed could soon provide much needed respite to a supply-starved market. While some analysts expect oil supply to return to pre-war levels by the end of July, others are more cautious given the extent and duration of the supply disruption. Damaged energy infrastructure, shut-in oil fields and logistical hurdles can pump the brakes on the expected supply surge and drag out the return of oil output for months. Demand destruction caused by the largest oil supply disruption in history is also weighing on price expectations. The lack of crude deliveries and high prices has caused a global refining trough, and inflationary pressures stymying growth may render some of this lost demand permanent. Chinese customs data showed the dearth of imports and refining extending into May as demand remained at the lowest in nearly a decade. Spot prices have also recently indicated some demand weakness, with the premium of physical barrels over futures returning to pre-war levels in many markets.
Oil Market Retreats as Strait of Hormuz Supply Flows Near Return -- The oil market continued on its downward trend as the market weighed the prospects for a resumption of oil supplies through the Strait of Hormuz and few details on the interim deal to end the U.S.-Israeli war with Iran. The crude market traded sideways in overnight trading, posting a high of $81.58 before it breached the $80 level and continued to trend lower. The market extended its losses to over $5.20 as it breached a support line at $77.80 and sold off to a low of $75.52 in afternoon trading. The market was further pressured by The Wall Street Journal report stating that the U.S.-Iran deal allows Iran to immediately resume its oil sales once the agreement is signed this week. The oil market later retraced some of its losses ahead of the close. The July WTI contract settled down $4.70 at $76.05 and the August Brent contract settled down $4.21 at $78.96. The product markets ended the session lower, with the heating oil market settling down 9.63 cents at $3.1702 and the RB market settling down 6.67 cents at $2.8805. Hezbollah said it believes Iran will not sign a final nuclear deal with Washington unless Israel withdraws from Lebanon, as Iran’s top diplomat said Israel’s continued troop presence in Lebanon would be considered a breach of the U.S.-Iran memorandum of understanding. U.S. average retail gasoline prices fell below $4/gallon for the first time since mid-April, as optimism grew that a preliminary deal between the U.S. and Iran would lead to the reopening of the Strait of Hormuz. According to GasBuddy data, U.S. national average retail gasoline prices fell to $3.997/gallon on Sunday, though prices are still up 90.8 cents from the same time last year. National average prices were at $4.065 on Monday, according to motorist group American Automobile Association. As of Monday, Americans have collectively spent about $46 billion more on gasoline since the start of the war. Goldman Sachs lowered its fourth-quarter Brent crude oil price forecast to $80/barrel from $90/barrel and cut its 2027 average estimate to $75/barrel from $80/barrel, after the U.S. and Iran signed a preliminary agreement to reopen the Strait of Hormuz. Analysts at the investment bank said they now assume that Gulf exports normalize to pre-war levels by the end of July versus the end of August expected previously. Goldman expects WTI to average $75/barrel in the last quarter this year and $70/barrel in 2027. Morgan Stanley has lowered its Brent crude oil price forecast for the third quarter to $90/barrel from a previous forecast of $100/barrel. It also lowered its Brent crude price forecast for the fourth quarter of this year by $15/barrel to $80/barrel. Barclays maintained its $100/barrel forecast for Brent crude in 2026. It said the timing of the restoration of navigation through the Strait of Hormuz could fall in line with its end of June baseline. It forecasts a small deficit in the third quarter. Commerzbank maintained its Brent crude price forecast of $85/barrel for the end of this year. It said it does not expect Brent to return towards pre-war levels of around $65/barrel until next year.
Global Oil Prices Drop Amidst Potential Iran Deal and Fed Meeting Focus | Ratopati - International market crude oil prices have fallen significantly with signs that Iran's oil could return to the global market. This has increased expectations of lower inflation and also decreased government bond yields. Investors' attention is currently focused on the first policy meeting of the new chairman of the US central bank Federal Reserve (Fed), Kevin Warsh. The international benchmark Brent crude oil price fell below $80 per barrel on Wednesday. On Wednesday, oil prices fell to their lowest level since the start of the US-Iran conflict. At the ICE Exchange's Comex division in London, Brent came down to $78.22 per barrel. This is 0.94 percent less than the market closing on the previous day. Meanwhile, at the New York Mercantile Exchange's Comex division, West Texas Intermediate (WTI) prices are also being traded at $75.16 per barrel, down 1.09 percent. According to a senior US official, the US is preparing to lift sanctions on Iranian oil under a peace agreement. This has increased expectations that millions of barrels of additional oil could be supplied to the global market. Following this news, US government bond yields have fallen. The impact of this has also been seen in Asian markets. The yield on Japan's 10-year government bond fell by 1.5 basis points to 2.63 percent, while Australia's 10-year yield also fell by 5 basis points to 4.787 percent. According to Kim Fustier, a senior energy analyst at HSBC Bank, the market is assessing the high probability of oil transportation from the Strait of Hormuz returning to normal. However, it is estimated that it may take until the end of September for this process to fully normalize. Many details of the US-Iran agreement, reportedly to be signed on Friday, have not yet been made public. For the past three months, with movement in Hormuz almost halted, global oil storage has been under pressure. US oil inventories are said to have reached their lowest level since 1983. Investors are currently waiting to see what signal Fed Chairman Kevin Warsh gives regarding interest rates. The market is anticipating interest rate hikes this year. According to analysts, the possibility of interest rates changing at this meeting is low. However, Warsh's press conference and the economic projections of Fed officials will be closely watched. According to Xiao Cui, a senior economist at Pictet Wealth Management, Warsh may signal a patient monetary policy approach rather than providing immediate clear guidance. If he supports the possibility of interest rates rising, the market will interpret it as a hawkish policy signal.
Cushing Stocks Crash To 'Tank Bottoms', Seasonally Lowest Since 2005; SPR Sees Another Huge Drain - Oil prices have tumbled in recent days as optimism grew there would be a lasting Middle East peace agreement, which would mean supplies would be back on track - but investors are taking a breather today with prices marginally higher this morning, rising off three month lows (and the 200DMA) after Trump threatened to 'start bombing again' if he doesn't like the deal (or how Iran is behaving). Solid US macro data also helped lift oil prices (demand). "The collapse in oil has changed the tone of global markets, supporting bonds (prices) and reducing near-term inflation pressure," noted Tickmill market strategist Patrick Munnelly. Oil industry experts and shipping companies have warned that it will take time to restore normal operations after the waterway's near shutdown. Crude inventories held by OECD member countries fell in May to the lowest level since 1990 as governments drew down stocks to offset the blockage of Gulf crude shipments during the Middle East war, the International Energy Agency said Wednesday. The drawdown since the start of the conflict has reached 163 million barrels in the Organisation for Economic Cooperation and Development club of wealthy countries, the IEA said in its monthly report. And so, all eyes on the official situation in the US today for any signs of those drawdowns slowing (API's report suggest not). API
- Crude -8.33mm
- Cushing -1.5mm
- Gasoline +2.47mm
- Distillates -461k
DOE
- Crude -8.263mm (-3.5mm exp, -5.2mm whisp)
- Cushing -1.606mm
- Gasoline -906k
- Distillates +951k
Crude inventories fell for the 8th straight week (-8.3mm) and Cushing saw another major drop in stocks. Products were mixed... Graphics Source: Bloomberg. At Cushing, Oklahoma, stockpiles declined for the eighth straight week, taking inventories to just above 20 million barrels. That’s the lowest inventories have been at the storage hub since October 2014, and takes us to what are considered essentially 'tank-bottoms', the point at which the hub is unable to fully operate. This is the lowest level for Cushing stocks for this time of year since 2005... The Strategic Petroleum Reserve saw yet another massive drawdown (8.9mm barrels), down almost 75mm barrels since the war started... The US rig count continues to rise along with US Crude Production (now back near record highs)... WTI was trading around $76.50 ahead of the official data and rallied uyp to $77 on the report... Finally, we note that The International Energy Agency warned on Wednesday that the conflict is causing a bigger hit to demand than previously thought, while adding in its first look at next year’s balances that it expects a renewed glut. Crude prices are down by almost 40% from their peak during the conflict. Producers, shippers and traders are now assessing whether the interim peace agreement will prove to be durable, and how long it will take for vessel transits of the Hormuz chokepoint to be revived in earnest. Sticking points remain, including opposition in Israel, which launched the war with the US in late February. But the scale of the price drop is already quashing concerns about a further energy-induced inflationary spike. “This decline is not merely a reduction in the geopolitical risk premium; it is a recalibration of the global oil balance for the months ahead,” said Tamas Varga, an oil analyst at brokerage PVM. “With oil prices tumbling, inflation expectations are likely to decline, while increases in consumer and producer prices should moderate.”
Oil rises 1% on US-Iran deal doubts; IEA warns of supply glut (Reuters) - Oil prices gained nearly 1% on Wednesday after U.S. President Donald Trump said the new ceasefire agreement with Iran was not final and the Iran war could resume if he is unsatisfied, but concerns over excess supply next year limited the gains. Brent crude futures settled 59 cents, or 0.75%, higher at $79.55 a barrel, and U.S. West Texas Intermediate gained 74 cents, or 0.97%, to $76.79. Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could resume a bombing campaign if he did not like it or if Iran did not "behave". The U.S. and Iran on Sunday said they had on terms to end the war and reopen the Strait of Hormuz. There's "still a bit of uncertainty in terms of the U.S. situation... (it) makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days," said Fawad Razaqzada, market analyst at City Index and FOREX.com. There were fresh Israeli air strikes and artillery fire in several towns of southern Lebanon on Wednesday. Lebanese security sources said Hezbollah had also launched two drone attacks on Israeli forces in the south. The memorandum calls for a halt to hostilities between Israel and the Iran-backed Hezbollah group in Lebanon. On the supply side, U.S. crude oil inventories fell for a 10th straight week last week as demand surged, pushing total stockpiles to their lowest level since 1985, as the Iran war continued to upend global energy markets, the U.S. Energy Information Administration said on Wednesday. "The U.S. and the rest of the world continue to draw down strategic inventory reserves as well as commercial inventories in an attempt to mitigate the disruption in the Middle East," said Andy Lipow, president of Lipow Oil Associates. However, a supply glut looms on the horizon. In its first look at 2027, the IEA said the oil market will enter a significant supply overhang, with global supply set to surge by 8 million barrels per day and demand rising by just 2 million. In the near term, the agency said the Iran-U.S. deal should provide an opportunity to replenish depleted inventories or build new strategic reserves. "Markets may be underpricing the depth of the supply glut coming online," said Crispus Nyaga, research analyst at Empire FX. Still, industry officials say a full return to pre-war production and refining levels is likely to take weeks, months or even years.
Oil Prices Fall After Trump and Pezeshkian Sign US-Iran Deal - Khaama Press - Global oil prices fell in early trading on Thursday after the United States and Iran signed a preliminary agreement aimed at ending hostilities and reopening the Strait of Hormuz. Oil prices declined in early global trading after the United States and Iran signed a temporary agreement to end the conflict and restore maritime traffic through the Strait of Hormuz. Reuters reported early Thursday that market concerns over potential disruptions to global energy supplies eased following the breakthrough between Washington and Tehran. Brent crude futures fell by 89 cents, or 1.12 percent, to $78.66 per barrel. US West Texas Intermediate (WTI) crude also dropped by 98 cents, or 1.28 percent, to $75.81 per barrel. The decline came after US President Donald Trump signed the Persian-language version of a 14-point memorandum of understanding with Iran, while Iranian President Masoud Pezeshkian signed the agreement on Tehran’s side. The accord is intended to serve as a framework for ending hostilities, reopening the Strait of Hormuz and launching broader negotiations between the two countries. Energy markets have closely monitored developments around the Strait of Hormuz, a critical shipping route through which a significant share of the world’s oil exports passes. Concerns over potential disruptions during the recent conflict had pushed oil prices higher in recent weeks. The agreement includes commitments to restore maritime navigation through the waterway, reduce regional tensions and advance negotiations on economic and security issues. The deal is also linked to discussions on phased sanctions relief and a proposed international investment package reportedly worth up to $300 billion for Iran. The memorandum is expected to receive formal endorsement during a ceremony in Switzerland, while regional actors, including Israel, continue to scrutinize the agreement and its implications for Middle East security and Iran’s future nuclear activities.
Oil Hits Lowest Levels Since Iran War as Hormuz Reopens - Crude prices hit their lowest levels on Thursday since the start of this year's Middle East conflict, after the U.S. and Iran signed a remote agreement to permanently end active military hostilities between them and reopen shipping to oil and gas tankers on the Strait of Hormuz. By 9:10 a.m. ET, NYMEX WTI for July delivery was down $2.39, or 3%, to $74.40 bbl after dropping to as low as $74.13. Front-month WTI was at around $67 bbl just before the start of U.S.-Israeli bombings against Iran on Feb. 28 and peaked at $ 117.63 by March. ICE Brent for August delivery slid by $1.65, or 2.1%, to $77.90 bbl, after tumbling to $77.10. Front-month Brent traded at around $72 bbl on the eve of the attacks on Iran and rose to as high as $126.41 by April. Among refined products, NYMEX ULSD futures for July dropped by $0.0975 to $3.0971 gallon, while NYMEX RBOB for July retreated by $0.0058 to $2.9096 gallon. The U.S. Dollar Index rose by 0.599 points to 100.465 against a basket of foreign currencies. Analysts noted that energy traders were aggressively pricing in an accelerated return of Iranian barrels to the market after the 14-point memorandum of understanding signed between Iran and the U.S. on Wednesday, June 17. The preliminary accord guarantees immediate toll-free transit through the Strait of Hormuz chokepoint for at least two months. Iran has indicated that it may charge vessels a service fee after the initial free period. Prior to the deal on Wednesday, the Hormuz remained largely impassable over 3-1/2 months to approximately 20 million bpd of petroleum liquids and liquefied natural gas. Goldman Sachs said it expects regional crude exports to fully normalize by the end of July, supported by a 13 million bpd surge in transit flows. It projected Iranian production to achieve a complete structural recovery by October, though subsequent inventory restocking could limit further steep price declines. Highlighting ongoing supply losses elsewhere, BNP Paribas viewed $75 bbl for Brent as a durable price floor for the foreseeable future compared to pre-war trading ranges. Long-term demand headwinds also weighed on sentiment as PetroChina forecast China's total 2026 crude consumption to drop 4.9% to 753 million metric tons. Notwithstanding the anticipated relief to Middle East supplies, ongoing structural disruptions to global refining capacity continued as Ukrainian long-range drones successfully struck a major oil refinery in the Russian capital.
Brent rises after Vance warns Israel against breaking ceasefire - (Reuters) - Brent crude oil prices rose on Thursday after U.S. Vice President JD Vance warned Israel against further attacks on Iran-backed Hezbollah in Lebanon, raising doubts about the durability of the U.S.-Iran ceasefire agreement. "The vice president's statements about Israel may have put things back on edge," . "I think the slightest sort of disturbance is going to register in the market." Brent crude futures settled at $79.85 a barrel, up 30 cents, or 0.38%. U.S. West Texas Intermediate fell 19 cents or 0.25% to finish at $76.60 a barrel. Before Vance's comments, Brent touched its lowest level since March 2, which was the first day of trading after the initial U.S.-Israeli strikes on Iran. WTI was at its lowest since March 4. Ultimately, oil markets will be focused on what happens in the Strait of Hormuz, through which 20% of the world's oil flowed before the start of the war. "Full resumption of oil flows through the strait has been priced back in," Kilduff said. "Anything short of that will be a problem." The 14-point memorandum of understanding between the United States and Iran establishes a 60-day negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz. The deal calls for traffic through the strait to be restored to its full capacity within 30 days. The agreement is also binding on the two countries' allies in the Middle East and applies specifically to Lebanon, where Israel has been waging an air and ground campaign against Hezbollah. The preliminary accord defers many of the more difficult issues, such as Iran's nuclear program, and also requires the United States and its partners to come up with a $300-billion plan to finance Iran's recovery. Analysts expect a gradual recovery in flows through the Strait of Hormuz, while industry experts have cautioned that prices may not plummet as demand recovers and inventories are refilled. Investment bank Goldman Sachs expects Gulf exports to normalize to pre-war levels by end-July, with crude production recovering by October. The bank estimates that a normalization in exports to pre-war levels might be achieved with a 13 million barrel-per-day increase in Hormuz flows from current levels to around 70% of pre-war levels. BNP Paribas does not currently anticipate a return to pre-war prices and views $75 per barrel as a "durable floor for the foreseeable future," it said in a note, given ongoing supply losses and higher demand. Brent traded around $60 to $70 per barrel in the first two months of the year before the war. China, the world's second-largest oil consumer, is forecast to consume 753 million metric tons in 2026, down 4.9% from 2025 amid a pivot to new energy and high oil prices, according to a report published by PetroChina's research unit. Ukrainian drones hit the Russian capital's oil refinery for the second time this week in what Ukraine cast as a demonstration of its growing capabilities.
Oil Prices Rebound as U.S.-Iran Peace Talks Are Postponed - Oil prices began to climb once again in early Asian trade on Friday due to uncertainty over the outcome of peace talks between the United States and Iran after Switzerland confirmed the talks had been postponed. At the time of writing, Brent crude had climbed back above $80 per barrel while West Texas Intermediate had risen to $76.28.Reuters reported on the statement, issued by the Swiss foreign ministry, without providing details. The statement followed earlier reports that said Vice President J.D. Vance, who had been scheduled to attend the talks, had canceled his trip. Reports did not specify the reason for the cancellation, although the IDF has confirmed striking southern Lebanon throughout the night. Separate reports cited the U.S. Vice President as warning Israel not to criticize Trump’s deal with Iran and not to try to undermine it or risk having the U.S. pull its military support for Tel Aviv. Iran’s agreement to the peace deal is contingent on Israel stopping its war in Lebanon, which Israel has indicated it has no plans to do.“Donald J. Trump is the only head of state in the entire world who is sympathetic to the nation of Israel at this moment in time, and he happens to be the head of state of the world's superpower. If I was in the cabinet of the Israeli government, I might not be attacking the only powerful ally that I have anywhere left in the entire world,” Axios cited Vance as saying. On Telegram, the IDF confirmed that it “struck southern Lebanon throughout the night and continues to strike Hezbollah terrorists and infrastructure sites in several areas across southern Lebanon.” It claims that those strikes were in retaliation for “repeated violations of the ceasefire” by Hezbollah.Prior to this latest escalation, oil prices had been falling throughout the week, dropping below $80 per barrel as traders assumed the ceasefire agreement would allow oil to start flowing more freely out of the Persian Gulf.Reports about tankers lining up to exit and others coming in to load helped reinforce this perception. It seems apparent, however, that normalization of oil flows from the Middle East will take a while yet.
Oil prices rise after US-Iran talks in Switzerland postponed -- Oil prices rose on Friday as hopes for a lasting US–Iran truce faded after peace talks in Switzerland were called off, while Israel stepped up attacks on Lebanon. By 0645 GMT, Brent crude futures gained 51 cents, or 0.64%, to $80.36 a barrel, and US West Texas Intermediate crude rose $1.28, or 1.7%, to $77.88 a barrel, with the front-month July contract expiring on Monday. Both contracts were headed for a weekly loss of about 8%. The more actively traded WTI August contract was up 59 cents at $76.44 a barrel. Switzerland said US talks with Iranian negotiators on a pact to end the Middle East conflict would not take place on Friday, as Vice President JD Vance dropped his travel plans, adding to uncertainty over the prospects for a lasting truce. "Prices may have bottomed out and we may see a renewed climb accompanied by plenty of volatility as cracks have already emerged in the memorandum of understanding," said Vandana Hari, founder of oil market analysis provider Vanda Insights. "This is not the geopolitical backdrop that would give the market any confidence in resuming Hormuz transit." On Thursday, both benchmarks touched their lowest since early March as several tankers, including three Saudi-flagged vessels carrying 6 million barrels of crude, sailed through the strait hours after the presidents of Iran and the United States signed an interim deal to end their war. Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would further swell supply. "Traders are still waiting for hard evidence that tanker traffic through the Strait of Hormuz is actually normalising before committing to the next leg lower," said Tim Waterer, chief market analyst at KCM. Roughly a fifth of the world’s oil and liquefied natural gas transited the strait prior to the war, and analysts have suggested trade could return to normal in the coming months if the US-Iran deal holds. Middle East producers are also gearing up to resume exports. Kuwait Petroleum Corp said on Thursday it had lifted, with immediate effect, all force majeure notices issued during the war. Iraq's oilfields are ready to resume production and output will gradually return to normal, restoring previous rates, Oil Minister Basim Mohammed said. However, Israel has continued its war against Hezbollah in Lebanon, raising questions about whether the US-Iran peace agreement will hold. In another disquieting sign for markets, US Vice President JD Vance pulled out of a planned trip to meet Iranian negotiators in Switzerland on Friday. "This is not the geopolitical backdrop that would give the market any confidence in resuming Hormuz transit," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
How Quickly Can the Strait of Hormuz Get Back Up and Running? – WSJ - Oil prices are trading below $80 a barrel after President Trump signed a deal to end the Iran war, a move investors expected will ease one of the biggest supply disruptions in decades. But energy traders and executives say the market for oil and other ingredients critical to the global economy will remain tight for weeks, potentially months. Ships need to reposition, damaged infrastructure has to be repaired and drained inventories will have to be rebuilt.
US Military Notice Says US Blockade on Iranian Ports Is Still in Effect, Contradicting Trump - The US military said in an advisory to merchant ships on Monday that the US blockade on Iranian ports remains in effect “pending execution” of a ceasefire deal between the US and Iran, The Hill has reported, a notice that contradicts President Trump’s declaration that the blockade has been lifted.The MOU will be officially signed on Friday to begin nuclear negotiations, but the end of the US blockade and the opening of the Strait of Hormuz were supposed to take effect immediately. Iranian media reported on Monday that several ships had made it to Iranian ports and that the blockade had been officially lifted, but the US military’s advisory suggested there was still a threat to commercial ships entering and leaving Iranian ports. “A military blockade of Iranian ports remains in effect, restricting all traffic inbound and outbound from these ports. Do not attempt to cross until explicit direction is given,” the notice said, according to Reuters. The notice told ship captains to consider “the health and safety of their crews,” warning that failure to comply with US orders “may result in rapid escalation to disabling or destructive fire.” The US bombed at least nine civilian commercial ships in its enforcement of the blockade since April, and one attack last week killed three Indian mariners. Also on Monday, US officials told reporters that the US would maintain its current military posture in the Middle East and suggested it won’t pull any troops out of the region until some sort of nuclear deal is reached.“We want to see again the Iranians do what they promise they’re going to tell us that they’re going to do, and the agreement contemplates the reduction of military forces in the region upon the agreement of a final deal, which again is the agreement that we assume we can make, so long as the Iranians make some concessions and give up some of their activities and some of their nuclear program,” a senior Trump official said.
Exclusive: Iranian oil tankers, cargo vessels sail through as US naval blockade officially lifted - At least three Iranian oil tankers and two cargo ships carrying essential goods have successfully broken through the US naval blockade, Press TV has learned from highly informed sources. The vessels sailed through on Monday evening, marking the first operational victory of the newly finalized memorandum of understanding between Iran and the United States. The vessels, which had been stranded for months amid the illegal American blockade aval campaign against Iranian shipping, sailed through international waters unimpeded, according to informed maritime sources speaking exclusively to Press TV. It came less than 24 hours after the finalized memorandum of understanding (MoU) mediated by Pakistan and Qatar mandated an immediate end to the illegal US naval blockade against Iran as part of a wider cessation of hostilities on all fronts. The secretariat of Iran’s Supreme National Security Council (SNSC) early on Monday confirmed that Tehran and Washington have finalized the text of an MoU on ending the imposed war, bringing an immediate and permanent halt to US-Israeli hostilities on all fronts, including Lebanon, and terminating the US naval blockade against Iran. The statement noted that the Islamic Republic, under the guidance of its martyred Leader Ayatollah Seyyed Ali Khamenei, the directives of the current Leader Ayatollah Seyyed Mojtaba Khamenei, the unwavering support of the Iranian people, and the tireless efforts of the country’s armed forces, has completed a period of difficult and intensive negotiations. “Based on the approval of the Supreme National Security Council, the text of the memorandum of understanding regarding the end-of-war negotiations between Iran and the United States was finalized on the evening of June 15,” the statement read. “Under the agreements reached, the war and military operations on all fronts, including Lebanon, are ended immediately and permanently. Furthermore, the naval blockade against Iran is terminated immediately and completely.” The SNSC secretariat added that the MoU will be officially signed on Friday, June 19. Talks toward a final agreement will be postponed until after the other side has implemented its commitments under the memorandum, the secretariat said.
Iran to define Hormuz future with Oman, Gulf states: U.S. officials -Iran and Oman will define how the Strait of Hormuz is administered in discussion with other Persian Gulf states under the agreement to end the war in the Middle East, senior U.S. officials told reporters Wednesday. Tehran and Washington are expected to formally sign a memorandum of understanding to end the war on Friday in Geneva. The U.S. officials, speaking on condition of anonymity to discuss the terms that hadn’t been made public, read the contents of the MOU to reporters on a conference call.Under the MOU, Tehran will allow the safe passage of commercial ships without tolls for 60 days only. Iran will then “conduct dialog” with Oman “to define the future administration and maritime services” in Hormuz in discussion with the other Gulf states, according to the agreement.President Donald Trump has repeatedly insisted that the strait be un-tolled after the war ends. There were no tolls imposed by Iran or any other entity before Trump began the war.The discussions on to how administer Hormuz should be “in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz,” according to the MOU.A senior U.S. official acknowledged that the Iranians will likely “assert their rights as aggressively as they can” in the regional discussions on how to administer Hormuz. But the official said the other Gulf states “will never agree to an arrangement that doesn’t permit toll-free access.”The U.S., meanwhile, will begin to lift its naval blockade of Iranian ports immediately after signing the MOU and will completely end the blockade within 30 days, an official said.Ships transited Hormuz freely without any fees or conditions before the U.S. and Israel attacked Iran on Feb. 28. But Tehran has sought to impose its control over strait since the war began.Traffic through Hormuz has changed little since the U.S. and Iran announced they reached a deal on Sunday. Six tankers were among 13 commercial ships that transited Hormuz on Tuesday, according to data shared by Kpler. More than 100 vessels sailed through the strait daily before the war.The Joint Maritime Information Center on Tuesday downgraded the threat level to ships crossing Hormuz to “substantial” from “severe” previously. It warned shippers still face a strong possibility of attack, but the behavior of Iran’s Revolutionary Guard “has become less volatile.”The center is a maritime security organization led by the U.S. and headquartered in Bahrain that coordinates among allied navies and merchant ships in the Middle East.Here is the full memorandum of understanding as read by a U.S. official:
80 Million Barrels of Crude Are Lined Up to Exit the Strait of Hormuz -Tankers carrying a total of 80 million barrels of crude are preparing to move through the Strait of Hormuz after the signing of the preliminary deal between the United States and Iran, Bloomberg reported today, citing data from Vortexa.The crude is on 40 tankers, of which 21 will be heading for Asia, with five going to China as their final destination and five others bound for Malaysia and Singapore, key regional transshipment hubs. None of the tankers is carrying Iranian crude, Bloomberg also noted.On Thursday, Bloomberg estimated the amount of crude waiting to get the green light to pass through Hormuz at some 62 million barrels destined for Asian markets. The supply waiting to exit the Strait of Hormuz could prompt some refiners to increase processing rates or opt for replenishing commercial stock tanks that have been drawn down over the past three months, the report suggested.The news that there is so much crude about to head out into global markets will likely pressure oil prices further, after they slid down approaching pre-war levels already, even though some uncertainty remains as to the safe passage of tankers via Hormuz.There are, however, indications that both sides in the peace negotiations mean it this time, reducing the risk of a reignition in the hostilities that prompted the closure of the chokepoint. This led several oil price forecasters to slash their outlook on crude earlier this week, including Morgan Stanley, Goldman Sachs, and Citi. The latter is the most bearish, expecting Brent crude to average $75 per barrel in the next quarter. Morgan Stanley, on the other hand, sees Brent crude at $90 in the third quarter, despite the reopening of Hormuz. At 12:42 AM CDT, Brent was trading at $79.96, with WTI at $75.97 per barrel, both slightly up from Thursday’s close.
Three Saudi oil tankers carrying 6 million barrels cross Strait of Hormuz -- Three supertankers from Saudi Arabia loaded with 6 million barrels of oil have crossed the Strait of Hormuz, according to data from the global trade intelligence firm Kpler. The Saudi tankers switched their transponders on Thursday in the Gulf of Oman after hiding their location for more than two months. The crossings come after President Donald Trump and Iranian President Masoud Pezeshkian signed a deal Wednesday that is supposed to reopen Hormuz. Vice President JD Vance told reporters later Thursday that more than 12 million barrels of oil passed through Hormuz overnight. “That is a high since the beginning of the conflict,” Vance said at a White House press briefing. Around 14 million barrels per day of oil and 6 million bpd of refined products passed through Hormuz before the war. U.S. Central Command later announced that the Navy had ended the blockade of Iran. Kpler had not observed a major traffic increase as of Thursday morning. More than 100 ships, dozens of which were tankers, transited the strait daily before the Iran war. “The floodgates haven’t opened, there is no mass exodus as yet,” said Matt Smith, director of commodity research at Kpler. Shippers still appear hesitant to cross Hormuz, Smith said. The Saudi tankers are very large crude carriers, or VLCCs, that can each carry up to around 2 million barrels of oil. The Shaden is sailing to Kiire, Japan, and the Awtad is en route to Ulsan, South Korea, according to Kpler. The Jaham’s destination is not clear yet. At least five Iranian ships have crossed the U.S. blockade line since June 16, according to Lloyd’s List Intelligence. Three of those vessels were state-owned oil tankers that exited the Gulf of Oman. Kpler estimates that 118 tankers stuck in the Persian Gulf could exit through Hormuz within 15 days once the shipping industry is confident in the Iran deal. A dozen tankers might enter the Gulf daily to fetch oil within 30 days of the deal, which is still well below prewar levels, according to Kpler’s forecast. The Joint Maritime Information Center downgraded its threat assessment for Hormuz to “substantial” from “severe” this week. The center is a U.S.-led maritime security organization headquartered in Bahrain that coordinates among allied navies and merchant ships in the Middle East. The JMIC cautioned shippers that attacks in Hormuz are still a “strong possibility” and mines in the sea lane remain a threat. However, it noted the behavior of Iran’s Revolutionary Guard “has become less volatile” since Washington and Tehran announced their deal.
Oil tanker traffic in Strait of Hormuz jumps after U.S. and Iran implement deal to open sea lane -- At least 20 oil tankers have crossed the Strait of Hormuz since the U.S. and Iran began to reopen the sea lane to commercial ship traffic, according to the trade intelligence firm Kpler. Tanker transits on Thursday hit the highest level since June 2, the firm said. However, traffic is still below prewar levels when more than 100 ships, including dozens of tankers, transited Hormuz daily. In total, 25 ships transited Hormuz on Thursday including cargo, container and other vessel classes, in addition to the tankers, according to Kpler. Traffic has picked up after the U.S. Navy ended its blockade of Iran, while Tehran is allowing ships to cross Hormuz for 60 days without paying tolls. U.S. Vice President JD Vance told reporters Thursday that the Iranians so far “are honoring their end of the commitment.” “Traffic was broadly balanced, with 13 crossings moving West to East and 12 moving East to West,” said Matt Smith, Kpler’s commodity research director. Three supertankers from Saudi Arabia and one from the United Arab Emirates crossed Hormuz on Thursday, according to Kpler. These huge ships, called very large crude carriers, or VLCCs, can haul up to 2 million barrels of oil.Iranian supertankers are switching on their transponders after going dark during the war, Kpler analysts told clients in a Friday note. Five Iranian supertankers loaded with oil were observed departing the region on Friday, the analysts said. “Two-way vessel flows suggest Iranian crude trade is gradually returning closer to normal operating patterns,” the analysts said. Eighteen ships that crossed Thursday followed the route designated by Iran to cross Hormuz, according to Kpler. Just one vessel used the route defined by the International Maritime Organization. The routes used by six ships couldn’t be confirmed, Kpler said. The U.S.-Iran deal has raised questions about how Hormuz will be governed. After the 60-day toll-free period ends, Iran will hold talks with Oman and the Gulf states on how to administer the strait, according to the deal terms. This appears to leave open the possibility that tolls could be imposed in the future.
Iran issues new passage guidelines for ships transiting Strait of Hormuz - Iran has issued a compulsory online clearance system requiring all vessels intending to transit the Strait of Hormuz to register their passage requests through a new centralized online system, effective immediately, as per a newly-inked Islamabad memorandum of understanding between Iran and the United States. The Persian Gulf Strait Authority (PGSA) issued the binding directive on Friday, introducing a 60-day window during which transit fees will be waived by the Iranian government. Under the new protocols, shipping operators must submit their processing passing requests exclusively via the official PGSA website (PGSA.ir) or through a designated email address (info@PGSA.ir), the PGSA said in a post on its X account. It added that no other communication channels will be recognized, and that the vessels must provide “valid, accessible” contact details in the submitted request. The agency mandated an “essential” 48-hour pre-arrival notice for all vessels approaching the strategic waterway aim to "avoid delays at the entrance or exit of the Strait". “During the 60-day period, tariffs for security, safety, and environmental services, as well as related Iranian insurances, will not be collected from shipowners and will be borne by the government of the Islamic Republic of Iran,” it said. The PGSA issued a stern warning given the presence of mine-affected areas and the necessity of ensuring safe passage and preventing collisions. “Coordination of the designated route and scheduled passage time for each vessel prior to moving toward the strait is mandatory; failure to comply shall be the responsibility of the vessel owner,” it emphasized. The agency’s post came a day after the Secretariat of the Supreme National Security Council said that Iran has introduced a temporary transit framework for commercial vessels passing through the Strait of Hormuz, under which shipping operators must submit passage requests to the Persian Gulf Strait Authority (PGSA.ir), while outlining that no fees will be levied for an initial 60-day period, with all associated costs covered by the Iranian government. The 14-point “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran,” was formally signed by the presidents of both countries early on Thursday, with the text finalized and the agreement officially in effect. It was finalized on Sunday, following months of intensive negotiations mediated by Pakistan, with support from other regional countries. Under the MoU, the war on all fronts, including in Lebanon, has ended immediately, and the US naval blockade against Iran has been lifted. It also provides for the reopening of the Strait of Hormuz to commercial shipping. “The Islamic Republic of Iran will conduct dialog with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz,” the MoU said.
Hormuz Traffic Stalls as U.S.-Iran Talks Collapse - A day after a rush to exit the Strait of Hormuz started, tanker traffic at the chokepoint is dwindling again as shippers pull back from immediate passage amid the collapsed U.S.-Iran talks before they even began.On Friday morning, no tanker was observed to have moved outbound from the Persian Gulf through the Strait of Hormuz, according to vessel-tracking data compiled by Bloomberg. Donald Trump said, "We didn’t meet out of desperation, Iran did. They are FINISHED! We’ll play out the 60 days. They get no money, not ten cents!" Inbound into the Gulf, one Norway-flagged products tanker and one Iran-linked LPG carrier made the crossing on Friday, according to observable data of tankers that haven’t gone dark. The thin Friday traffic compares to dozens of vessels that left the Gulf outbound from the Strait of Hormuz on Thursday, which marked the reopening of the chokepoint.A total of 18 transits were recorded across the June 17 to 18 window, the highest single-window count of the conflict, according to data from maritime intelligence firm Windward. Chinese-affiliated, Chinese-linked, European, Japanese, and Saudi tonnage were among the early departures.Three Saudi-flagged supertankers carrying approximately six million barrels of crude transited the Strait dark in the hours following the signing of the U.S.-Iran deal, Windward noted.In addition, tankers carrying a total of 80 million barrels of crude were preparing to move through the Strait of Hormuz.But this reopening was put into question by the collapse of the U.S.-Iran talks even before they began. The talks were set to begin in Switzerland on Friday after the memorandum of understanding started the 60-day countdown for negotiations for a deal.The U.S.-Iran deal has raised hopes that the oil supply disruption in the Middle East could be nearing its end, but the biggest international tanker operators aren’t rushing to return to the Strait of Hormuz.“Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month,” Jotaro Tamura, chief executive officer at Mitsui OSK Lines, the world’s largest tanker operator, told the Financial Times in a recent interview.
Iran declares Strait of Hormuz 'closed' over MOU 'breach' -- Iran’s military has declared the Strait of Hormuz “closed,” citing air strikes in Lebanon as “America’s blatant breach” of the Memorandum of Understanding to end the war, Iran’s semi-official Tasnim news agency reported—even as politicians on both sides insisted the key shipping lane was open. “The Strait of Hormuz will be closed to vessel traffic,” a message attributed to the Iranian military’s operation command and posted on Tasnim’s Telegram account said about 9:10 a.m. ET The claim directly contradicts comments made just hours earlier by Iran’s foreign ministry, which told Tasnim that shipping through the strait was “operating normally” and denied any closure. U.S. Vice President JD Vance told Fox News in a live interview about 9:30 a.m that “the straits really are open,” pointing to ongoing efforts to keep shipping lanes clear. He said: “We are not seeing any evidence that the Iranians are still closing down the Strait of Hormuz.” U.S. Central Command announced on X, meanwhile, that “commercial ship traffic in the Strait of Hormuz increased June 20 as U.S. forces continued operating in the general area to support freedom of navigation.” Tasnim is a semi‑official Iranian news agency associated with the country’s Islamic Revolutionary Guard Corps, meaning its reporting often reflects military or hardline positions rather than unified government policy. The conflicting signals add fresh uncertainty to the status of one of the world’s most important oil chokepoints, through which roughly one‑fifth of global energy supplies pass under normal conditions. Newsweek contacted the White House, the U.S. State Department, Iran’s foreign ministry, and shipping giant Maersk for comment via email on Saturday morning, asking for clarification on whether the Strait of Hormuz is currently open, how they interpret the ceasefire terms, and what this means for global shipping and security. Global shipping, oil markets, and diplomatic efforts to end the wider Middle East conflict are all directly impacted by the uncertainty over whether the strait is open or not. This latest announcement underscores how fragile the U.S.-Iran ceasefire deal remains, particularly as fighting linked to Israel and Hezbollah continues to escalate.
Iran Says It Closed Strait of Hormuz as Fighting Flares Again in Lebanon – WSJ - Iranian security officials said they had closed the Strait of Hormuz, citing a U.S. failure to stop the fighting in Lebanon as required under the agreement signed earlier this week by President Trump. The announcement by Iran’s joint military command came as clashes between Israel and Hezbollah flared again in Lebanon on Saturday, just hours after the two sides agreed to a renewed ceasefire. It undid for now the main achievement of the deal, which was to set the stage for reopening a waterway vital to world energy markets. The U.S. Central Command, which oversees forces in the Middle East, said Saturday that traffic continued to flow and that the military was monitoring to make sure that remained the case. Even before Iran’s announcement, the recovery of traffic through the strait had been halting. Iran had imposed new procedures, including a demand that ships register to cross two days in advance, and wary shipowners were monitoring the still-uncertain environment in the waterway. The flare-up in fighting comes as the U.S. and Iran work to get their next round of peace talks back on track. Iran said Saturday its delegation would attend talks in Switzerland after postponing plans to travel Friday, a hiccup that followed an earlier round of heavy Israeli strikes carried out in retaliation for a Hezbollah drone attack that killed four Israeli soldiers. Iran said its delegation would include chief negotiator and parliament speaker Mohammad Bagher Ghalibaf, Foreign Minister Abbas Araghchi and oil officials. The U.S. was expected to send Vice President JD Vance, who said in an interview on Fox News that envoys Steve Witkoff and Jared Kushner were already there engaging in technical discussions. The memorandum of understanding that aims to reopen the strait and end the fighting, signed Wednesday by Trump, says at the outset that the war on the Lebanese front must end as well. Iran’s Foreign Ministry spokesman said Saturday the country’s negotiators would press the U.S. to meet those obligations. Israel and Hezbollah, an Iran-backed militant group that acts independently of Lebanon’s government, agreed to a renewed ceasefire that took effect at 4 p.m. local time Friday. But on Saturday, Lebanese state media reported a new round of Israeli attacks including around the southern city of Nabatieh. The Israeli military carried out the attacks after Hezbollah fired more than 50 times at Israeli forces in southern Lebanon, a military official said. Lebanese health officials said seven people were killed in the strikes. They said 83 people had been killed and 141 wounded in the earlier attacks, in which Israel said it killed dozens of militants. Saturday’s strikes extended the fallout of what had been one of the most serious escalations in Lebanon since a ceasefire was reached in April. The fighting had never stopped for long despite the truce, as Israel continued to hold territory in southern Lebanon and the two sides repeatedly clashed.
Iran emerges from war with its economy in free fall and inflation on some food items above 400%. If the regime doesn’t fix it, there will be trouble -- The regime in Tehran is still standing after the U.S.-Israeli war on Iran, but its economy is collapsing and could spark more unrest among the population.Iran’s economy was already in shambles before the war began more than three months ago, with high inflation and a currency crash spurring mass protests in late December.But the war has only made conditions worse. Unemployment and prices have soared, including for basic food items. The Iranian government’s own data showed that the price of cooking oil is up 430% compared with a year ago, with eggs up 345%, rice 287%, and milk 139%.“We have all become poor,” a resident of Tehran told Radio Free Europe’s Radio Farda earlier this month. “Those of us who were once middle-class, or a little above it, are now financially destitute.” He added that he has sold his furniture, appliances, carpets, and other household items to survive. On top of that, he’s unemployed and has resorted to making sandwiches to sell on the subway. Meanwhile, his phone bill and electricity bill have jumped fivefold.Iran has estimated that the war inflicted $270 billion worth of damage, nearly equal to its GDP. The International Monetary Fund expects the economy to contract by 6.1% this year, and the United Nations warned 4.1 million more Iranians could drop below the international poverty line. But the regime has also mismanaged the economy for decades and worsened its wartime crisis with policies like an internet blackout that put more people out of work.In addition, the U.S. naval blockade cut off oil revenue for Iran, putting pressure on its foreign exchange reserves, which Capital Economics estimated in April were only enough for three months’ worth of imports at prewar levels. Iran-based economist Javad Rahimpour told Radio Farda that people are draining their savings and economic discontent is very high. “The conditions for protests may not currently exist,” he added. “But that should not lead us to think there is some kind of convergence between the state and the people.”However, an Iranian government employee who has attended pro-regime rallies expressed more impatience with the country’s leadership.He told the New York Times last week that he exhausts all his pay by the middle of the month and must buy groceries on credit—only to find that prices double when it’s time to settle the bill.“Everybody is angry over the economy, and if the government doesn’t fix things, there will be trouble,” he said. Former U.S. diplomat Dennis Ross, who has extensive experience in the Middle East, pointed out that Iran’s leaders must face up to their failures to provide for the people without being able to use the war as an excuse.But the regime will attempt to rebuild its military and defense industrial base, diverting resources away from a civilian economy that’s already weighed down by water and electricity shortages, he wrote in a Washington Post op-ed last week.“But even with aid, Tehran’s ability to manage its domestic woes will remain limited, and the internal pressures will build,” Ross predicted. “They may not lead to the collapse of the regime, but they could produce what Khamenei greatly feared: the emergence of an Iranian Gorbachev—a leader who wants to prioritize domestic development, reach out to the public, and end confrontation with the outside world as organizing principles.”
India Receives First Post-Deal LNG Cargo Through Strait Of Hormuz - India on Friday received the first LNG tanker that had passed through the Strait of Hormuz since the U.S. and Iran announced a deal this past weekend.The LNG carrier Disha, flying the flag of Malta, arrived at the Dahej Port on India’s West Coast on Friday, after having crossed the Strait of Hormuz earlier this week.The vessel safely anchored at the Petronet LNG jetty, the Bharuch port authority told Indian media. Petronet LNG had chartered the LNG tanker, which is managed by an India-led shipping consortium.The Disha cleared the Strait of Hormuz on Monday, June 15, hours after the United States and Iran on Sunday announced a deal to reopen the Strait of Hormuz more than 100 days after its closure.The tanker had loaded LNG from Qatar’s Ras Laffan in early March, just when the Gulf state halted LNG production and exports amid the closed Strait of Hormuz and Iranian missile hits on its LNG infrastructure at Ras Laffan.Since the Disha cleared the Strait of Hormuz on June 15, no India-flagged vessel has exited the Persian Gulf, according to Opesh Kumar Sharma, director in India’s Ministry of Ports, Shipping and Waterways.“As of now, no other Indian-flag vessel has moved out after Disha,” the official told a briefing on Thursday.Tanker owners and operators await clearance to proceed and are not rushing to test the passage until they have assurances it is safe to do so.Qatar has started to return LNG tankers back to the Middle East in anticipation of an imminent reopening of the Strait of Hormuz that would allow the world’s second-biggest LNG exporter to start producing and moving LNG supply again.The situation took another twist early on Friday after Switzerland confirmed the U.S.-Iran talks that were set to begin in Geneva had been postponed.
Israel Continues Attacks on Southern Lebanon, Orders 29 Villages Evacuated - While discussion of Israel’s attacks on Lebanon Sunday primarily focused on a deadly attack on the capital city of Beirut, the IDF continued to carry out operations across southern Lebanon as well, and continuing to try to force the population out of the area.The IDF issued two distinct statements on Sunday ordering people living in southern villages, 13 in the first statement and 16 in the second one, to flee their homes and move north of the Zahrani River.Several of the villages were ordered evacuated for the first time during the war, as many lie north of the Litani River, which was meant to be the deepest the IDF was going during this invasion. More than 20 other towns in and around Nabatieh were ordered evacuated on Saturday. In addition to the deaths of three in metro Beirut attacks, others were reported killed over the weekend in attacks on southern Lebanon, including one slain in a strike on the city of Sidon. Lebanon’s Health Ministry put the death toll of the Israeli war at 3,783 killed and 11,699 wounded since the invasion began in early March.IDF officials claimed a person they killed on Friday, Ali Mussa Daqduq, was actually a “senior” commander within Hezbollah’s elite Radwan Force. Hezbollah has yet to confirm such a loss, but the sheer volume of senior Radwan commanders reported slain over the course of Israeli attacks belies the long-standing believe the organization was quite small and selective. Israeli security sources were quoted over the weekend saying that, irrespective of any US-Iran peace deal that might be negotiated, they intend to keep ground troops inside Lebanon. That suggests that speculation that the peace deal was conditioned on ending the Lebanon occupation is running into more challenges.
Israeli Air Force Chief Says Major Attack on Iran Was Called Off Last Week - - The head of the Israeli Air Force has said that a major strike on Iran using the “entire Air Force” was called off last week after Iran bombed northern Israel in response to Israel’s strikes.Israel did launch strikes against Iran following the Iranian attack, but according to media reports, Israeli Prime Minister Benjamin Netanyahu scaled down the strikes after a phone call with President Trump, who initially said he would tell Israel not to respond at all.Israeli Air Force Chief of Staff Maj. Gen. Omer Tischle did claim that Israel hit “dozens of targets” in Iran on Monday, June 8, but added that a much larger operation didn’t go forward.According to The Times of Israel, Tischle told Israeli soldiers on Tuesday that “the entire Air Force was ready to take off for a broad strike sortie” that would have included attacks on “hundreds of targets in the heart of Iran.”He added that “the strike was halted while we were briefing in the squadrons, just one hour before the departure for the sortie.”According to The Wall Street Journal, when Trump spoke with Netanyahu before the Israeli strikes, and it became clear the Israeli leader wouldn’t call off his plans to attack Iran, Trump asked him to keep it limited.Another escalation between Israel and Iran could come soon, as the Iranian military has warned of a “harsh response” if Israel continues its war in Lebanon, which is supposed to end under the US-Iran Memorandum of Understanding, but Israeli attacks have continued and killed at least four people on Tuesday.
Israeli Ministers Say Israel Isn't Bound by US-Iran Deal, Won't Withdraw From Lebanon - --In the wake of the US and Iran announcing a Memorandum of Understanding to end the conflict between the two nations that includes a ceasefire in Lebanon, Israeli ministers have said Israel isn’t bound by the agreement.Israeli Defense Minister Israel Katz vowed that the IDF will not withdraw from its so-called “security zones” in southern Lebanon, which include a major swathe of Lebanese territory, and will also continue the occupation in southwest Syria and Gaza.“Prime Minister Benjamin Netanyahu and I are leading a clear policy that determines that the IDF will remain in the security zones in Lebanon, Syria, and Gaza, without any time limit, to protect, from there, the border and Israeli communities against jihadist elements,” Katz said.Netanyahu later put out his own statement reaffirming what Katz said, vowing that Israel will not withdraw from Lebanon, Syria, or Gaza.The Israeli defense minister said that the IDF will continue its destruction campaign in southern Lebanon and its forced displacement of Lebanese civilians. “We oppose an IDF withdrawal from Lebanon, despite all the existing pressures and those that will still come,” he said. Katz added that Netanyahu “made these points clear to US President Trump and to other senior American officials,” which aligns with a report from Ynet that said Netanyahu told Trump that Israel is not bound by the Lebanon clause of the US-Iran MOU. Katz also said that if Iran strikes Israel over its continued war in Lebanon, Israel will hit Iran “with full force.”Israeli Finance Minister Bezalel Smotrich slammed the agreement Trump reached with Iran, saying it is “bad for Israel and for the entire free world. Period.” Israeli opposition leaders also attacked Netanyahu, with former Prime Minister Yair Lapid saying there has “never, ever, been a more absolute failure than Netanyahu’s diplomatic failure on the Iranian front.”Iranian officials on Monday reaffirmed that an end to Israel’s war in Lebanon was key to a lasting deal with the US. “Lebanon and the termination of the war in Lebanon are an inseparable part of the understanding on ending the [US-Israeli] war [on Iran]. We have shown that we are determined in this regard and have proven in practice that we are serious, and we will continue to monitor developments carefully in the future,” said Iranian Foreign Ministry spokesman Esmaeil Baghaei.“The word Lebanon is used three times in the understanding. It is mentioned that ending the war includes Lebanon and respecting the country’s sovereignty and territorial integrity … The United States must honor its commitments and ensure that the Zionist regime fulfills its obligation not to attack Lebanon,” he added.While Baghaei said Israel must respect Lebanon’s “territorial integrity,” a US official claimed to reporters on Monday that the MOU doesn’t include an Israeli withdrawal from Lebanon, just a “ceasefire.” Israeli attacks and military operations appear to have eased since the announcement of the US-Iran deal, but at least one person was killed by an Israeli drone strike on Monday, and as long as the occupation remains, the war will continue at some level.
Iran's Military Warns of 'Harsh Response' If Israel Continues Attacks in Lebanon - The Iranian military’s Khatam al-Anbiya Central Headquarters on Tuesday called for Israel to halt its continued attacks in Lebanon, warning there would be a “harsh response” if it doesn’t. The headquarters said in a statement that Israel has violated the ceasefire deal between the US and Iran, which calls for an end to Israel’s war in Lebanon, 84 times over the past two days, and that Israel had been continuing “crimes and the killing of the oppressed people of Lebanon.”“If the child-killing army of the Zionist regime does not end its evil acts in southern Lebanon, it must await a harsh response from the powerful armed forces of the Islamic Republic of Iran,” the Iranian military command added. While there’s been a decline in Israeli attacks in southern Lebanon since Sunday, they haven’t stopped, and at least four people were killed by Israeli drone strikes in the country on Tuesday. Also on Tuesday, Iranian Foreign Minister Abbas Araghchi said that continued Israeli attacks and Israel’s continued occupation constitute a violation of the Memorandum of Understanding between Washington and Tehran, which is scheduled to be formally signed in Geneva this Friday.“The end of the war includes the end of occupation. Without the withdrawal of Israeli forces from territories they occupied during this war, the war will have not been fully brought to an end,” Araghchi said.Israeli officials, including Prime Minister Benjamin Netanyahu, have vowed that Israel won’t withdraw from southern Lebanon, and a senior Trump administration official speaking with reporters on Monday appeared to back the Israeli position, saying an Israeli withdrawal wasn’t a condition of the deal.
Ben Gvir Says Israel Cannot Stop Destroying Houses in Southern Lebanon - Israeli Minister of National Security Itamar Ben Gvir said on Wednesday that Israel cannot stop destroying homes in southern Lebanon despite the US-Iran Memorandum of Understanding that calls for an end to Israel’s war in the country. “Israel cannot stop the demolition of houses in southern Lebanon. We simply cannot stop, that’s all,” Ben Gvir said, according to Turkey’s Anadolu Agency, which cited the Israeli Knesset’s broadcast channel. “We cannot allow the residents of southern Lebanon to return. We must continue to control the territory even if we disagree with Trump, we are an independent state,” Ben Gvir added. Iranian officials have made clear that they will insist on a real ceasefire and Israeli withdrawal from Lebanon as part of their deal with the US, though Ben Gvir and other senior Israeli officials, including Prime Minister Benjamin Netanyahu, have vowed that Israel will not pull out of the country. Israeli attacks continued in Lebanon on Wednesday despite the US-Iran MoU, and at least two people were killed. The war could unravel the potential US-Iran deal as Iran’s military is warning of a “harsh response” if Israel continues its attacks in Lebanon. Ben Gvir is more explicit about Israel’s designs for Lebanon, as he said last month that Israel has a “settlement plan” for southern Lebanon, while Netanyahu and Israeli Defense Minister Israel Katz frame their desire for an indefinite occupation of the territory the IDF has seized in the country as necessary for “security” purposes. Israeli media reports that Ben Gvir, leader of the Jewish Power party, suggested at a recent cabinet meeting that the IDF should kidnap women and children in Lebanon as a way to pressure Hezbollah.
Amnesty Warns Israel Committing War Crimes With Lebanon Population Transfers - -While the large number of civilian deaths and the large number of healthcare worker casualties have rightly garnered considerable attention during Israel’s ongoing invasion of Lebanon, the mass displacement of civilians has been relatively under-reported given the sheer scale and the legal implications.Early in the war Israeli officials bragged about displacing hundreds of thousands of civilians from southern Lebanon and not allowing them to return while the war was ongoing. Only yesterday, the UN noted the displacement was actually substantially higher than that, around 1.4 million or roughly a fifth of the entire population of the country. How we got there is part of the problem though.Amnesty International, in their latest report, noted Israel has been using evacuation orders against populated areas an inordinate amount of times, and similarly using no-return orders to keep the displaced from coming back home when the situation is over.That has not only led to the displaced numbers spiraling, it also effectively amounts to a forced population transfer, a serious war crime under the Fourth Geneva Convention. Since these orders come in the wake of Israel advancing a plan in late 2025 to create a “Trump Zone” out of a forcibly depopulated and militarily occupied southern Lebanon, it’s difficult to argue this is purely unintentional.It is not uncommon for Israel to issue an evacuation order for dozens of villages any given day, and as the war expands, the number of formal “no return” orders issued has spanned in excess of 6% of Lebanon’s land mass.That problem is compounded because even if nominally “no return” zones aren’t imposed in a lot of southern Lebanon, Israeli forces have regularly attacked people trying to return, particularly to municipalities that were heavily Shi’ite, and after ordering the populations of towns and cities north of the Litani River, Israel also destroyed all the bridges over those rivers, making return logistics incredibly challenging, even if it’s not strictly disallowed.In the southernmost parts of the country, Israel has leveled some towns and villages, meaning the displaced will have nothing to return to at any rate, and with Israeli Defense Minister Israel Katz saying those areas are going to remain security zones “indefinitely” and “cleared” of residents, again there’s not much room for plausible deniability.Not that Israeli officials aren’t trying, of course. Israeli officials were quick to reject Amnesty’s statement, insisting the evacuation orders are only technically “advanced warnings” of imminent attacks and that technically, no prohibition exists on the civilians trying to return to their homes. If that works as a loophole for the Geneva rules against forcible population transfers, then a large chunk of Lebanon’s population is facing an uncertain future indeed.
Lebanon Tells UN That Israel Is Using Herbicide as a Weapon - Before the Israeli invasion of Lebanon in March, they were still attacking Lebanon on an almost daily basis at any rate. Starting in late January, some of those attacks involved the spraying of concentrated herbicide on Lebanese farmland and other agricultural lands. Those operations continued to be reported intermittently after, but were mostly overshadowed by the invasion and the thousands of people killed directly by Israeli attacks. Lebanon, however, has finally gotten its investigation to the point where they could formally complain to the UN Secretary-General and the Security Council that Israel is using herbicide as a weapon. They cited studies conducted by labs that found the concentration “greatly exceeded” the levels found in the soil even after it was regularly used by farmers for ordinary weed control. Glyphosate, the herbicide in question, has a controversial history the world over, though it is still used, with caution, in a lot of the developed world as an effective herbicide. Exposure has been linked to cancer, and that’s not considering concentrations 20 to 30 times normal usage like is being seen across border villages and farmland. The strikes are part of an Israeli campaign that has done massive damage to Lebanese farmland, particularly in the southernmost parts of the country, that Israel has had designs on forcibly depopulating outright.Though Israel has maintained in communications with the UNIFIL peacekeepers in Lebanon that the deployment of glyphosate was itself just “non-toxic” chemicals, they also admonished those same peacekeepers to take cover when they were being used in the area. Israel has similarly been deploying those chemicals off and on in the border areas of southwest Syria.Though deployment of herbicides in a warzone isn’t automatically a violation of international law in and of itself, it likely does when the chemicals are of dubious safety at such high concentrations, and when their use against farmland threatens the long-term survival of the population.It was also presumably violate the Environmental Modification Convention, an international treaty meant to prevent the use of defoliants and other modification techniques that would have long-term impact on the targeted nation. Israel, however, is not a signatory to that convention.
Iran strongly condemns Israel’s latest bloody aggression against Lebanon -- Iran’s Foreign Ministry has condemned in the strongest terms Israel’s latest aggression against Lebanon, placing a premium on Washington’s accountability for the consequences of the regime’s war mongering. Israeli warplanes bombed residential areas in southern and eastern Lebanon before dawn Friday. At least 31 Lebanese have been killed as Israel keeps attacking the country despite the US-Iran deal coming into force. Lebanon’s National News Agency reported that strikes targeted inhabited homes in the towns of al-Sharqiyah, Harouf and Kfar Sir in the Nabatieh district. Earlier strikes on Thursday had already killed at least three people, including two in Kfar Tibnit and one in Zebdine, according to Lebanese state media. In a statement on Friday, Esmaeil Baghaei, the Iranian Foreign Ministry spokesman, underscored the United States’ direct responsibility under the current circumstances. Baghaei highlighted the first point of the memorandum of understanding (MoU) between Iran and the United States which stipulates that an end to Israeli aggression in Lebanon is an inseparable part of the agreement. He warned of the serious and immediate consequences that the continued warmongering of the occupying and genocidal Zionist regime will have on regional peace and security." "The Islamic Republic of Iran will take all necessary measures to safeguard its interests, security, and rights, as well as those of its allies," he said. The Israeli attacks on Friday targeted sleeping families and marked one of the deadliest single nights since the conflict began on February 28. The death toll from Israel’s campaign against Lebanon has now hit the 3,912 mark. More than 11,870 have been wounded, and over 1 million Lebanese displaced, according to official figures.
Israel, Hezbollah agree to ceasefire starting on Friday - US official (Reuters) - Israel and Hezbollah have agreed to a ceasefire set to begin at 4 p.m. local time on Friday, a senior U.S. official told Reuters. “Hezbollah and Israel have agreed to a ceasefire,” the official said on background, adding that negotiators for the U.S. and Qataris worked out the deal with help from Iran. “We understand that after the exchange of fire earlier today, Israel and Hezbollah are now in a ceasefire.”
Lebanon-Israel Ceasefire Reported After at Least 47 Killed, 93 Wounded in Israeli Strikes --Reports Friday afternoon from senior US officials claim that a ceasefire between Israel and Hezbollah has been agreed upon. The deal was brokered with the help of Qatar, and was scheduled to begin at 4 p.m. local time, though in the first half hour since multiple additional Israeli strikes have been reported, suggesting this deal may be no more successful than countless others. Israeli officials insisted they retain “full operational freedom” despite the deal.This ceasefire deal, such as it is, was rapidly negotiated after the planned peace deal signing between the US and Iran in Geneva was derailed by intense Israeli attacks across southern and eastern Lebanon overnight, killing at least 47 people and wounding 93 others. The signing was postponed, and a new date has not been set. Early overnight attacks were reported to have centered primarily around towns and villages in the Nabatieh District, though other nearby districts and the city of Tyre were hit as well and Israeli strikes also later struck further to the east, around northern Baalbek. The town of Jezzine was also confirmed struck with at least one killed there as well. At least seven women and two children are reported among the slain. Panic was reported across southern Lebanon during the attacks, with locals fleeing from towns and villages across Nabatieh and Sidon, anticipating further attacks.Last weekend’s preliminary US-Iran deal was meant to end the Israeli invasion of Lebanon, though Israel never really stopped attacking and persistently has reiterated that they had no intention of withdrawing. The process dramatically escalated overnight and Israel is reporting that since last night they’ve carried out 150 strikes on “Hezbollah targets,” though as always the Hezbollah nature of those targets doesn’t involve any evidence provided to the public. Israel similarly purported to have hit at least 80 Hezbollah “command centers.”Hezbollah, for its part, attacked advancing Israeli Merkava battle tanks near Kfar Tebnit, further north in Nabatieh, killing at least four Israeli soldiers and wounding others. A brigade commander was reportedly among the slain, and Hezbollah said three tanks were destroyed.Following that incident, Israeli National Security Minister Itamar Ben-Gvir demanded that “all Lebanon must burn.” Though presented as the result of the tank destruction and deaths, this is not out of keeping with his stance on Lebanon beforehand, and may just amount to a reiteration of his desire for further escalation.
Ceasefire between Israel and Hezbollah reported, but Israeli strikes persist on ground - A reported ceasefire between Israel and Hezbollah has come into effect at 4:00 pm local time on Friday, according to a senior US official, even as new Israeli airstrikes were reported in southern Lebanon at the moment the truce was said to begin. A senior US official, speaking to Reuters on condition of anonymity, confirmed that both sides had agreed to halt hostilities after intense diplomatic negotiations. “Hezbollah and Israel have agreed to a ceasefire,” the official said, adding that the arrangement was brokered by US and Qatari mediators with significant backing from Iran. “We understand that after the exchange of fire earlier today, Israel and Hezbollah are now in a ceasefire,” the official added. However, reports from the ground suggested continued violence at the very moment the truce was meant to take effect. Al Mayadeen’s correspondent in southern Lebanon said an Israeli airstrike hit Nabatieh as the ceasefire reportedly began. Channel 13, citing a senior Israeli official, said, “We are currently in a state of ceasefire, and if Hezbollah doesn't attack us, then in our viewpoint, this is not the time for war.” The same official added that “Israeli forces remain in southern Lebanon,” while claiming, “We have the freedom of operation against any direct threats that target our forces and territory.” The announcement of a ceasefire followed a night of intensified Israeli bombardment across Lebanon. Israeli warplanes carried out sustained strikes from shortly after midnight into Friday morning, targeting multiple areas in the south, the Bekaa, and Baalbek. In southern Lebanon, repeated waves of airstrikes hit towns including Nabatieh, Harouf, Jibchit, Kfar Joz, Toul, and surrounding areas. Additional strikes were reported in Doueir, Deir al-Zahrani, and other nearby localities. In the Bekaa Valley, strikes targeted areas along the Litani River basin and surrounding highlands, while Baalbek also came under attack. Drones and artillery fire further expanded the scope of the assault, including areas near Beirut’s southern suburbs, raising tensions across multiple fronts. Lebanon’s Health Ministry Emergency Operations Center said rescue teams were often unable to reach victims for hours due to ongoing strikes. By Friday morning, preliminary figures indicated more than 30 people killed and 33 wounded, though officials warned the toll could rise as search operations continued. The deadliest strike hit Harouf, where seven people were killed, including three toddlers and two young women. In al-Sharqieh, additional civilians were killed, among them a child and two women. Doueir also saw deadly strikes on residential buildings. Other fatalities were reported in multiple towns across southern Lebanon and the Bekaa region, including elderly victims and emergency personnel. The Lebanese Civil Defense confirmed that one of its paramedics was killed alongside his family in the al-Sharqieh strike, underscoring the heavy toll on first responders. Despite the ceasefire announcement, the timing of continued strikes has raised questions over its immediate durability on the ground. The continued Israeli acts of aggression comes as per the Memorandum of Understanding signed between Iran and the US, the war on “all fronts” including Lebanon should end.
Israel massacres sleeping families after heavy losses in south Lebanon - After suffering heavy ground losses including five soldiers killed and three tanks destroyed by Hezbollah, Israel has massacred sleeping civilians in southern Lebanon, prompting Iran to cancel scheduled US talks in Switzerland. The Iranian negotiating team will not travel to Switzerland for talks set to begin on Friday, according to Lebanon's al-Mayadeen broadcaster. Switzerland's foreign ministry confirmed the talks at the Bürgenstock resort had been cancelled, while the White House said Vice President JD Vance, who was to lead the US delegation, had postponed travel. The cancellation came as Israeli warplanes bombed residential areas in southern Lebanon before dawn Friday, killing at least 20 civilians and wounding 30 others in what Lebanese officials termed a massacre. Lebanon's National News Agency reported that strikes targeted inhabited homes in the towns of al-Sharqiyah, Harouf and Kfar Sir in the Nabatieh district. A separate strike on the al-Ashamiya area destroyed a house, killing four more, while an Israeli drone struck a motorcycle near the Doueir municipality building, killing one person and wounding another. Earlier strikes on Thursday had already killed at least three people, including two in Kfar Tibnit and one in Zebdine, according to Lebanese state media. The attacks, which began at approximately 2:10 a.m. local time, targeted sleeping families and marked one of the deadliest single nights since the conflict began on February 28. The cumulative death toll from Israel's campaign against Lebanon has now reached 3,912 killed and 11,873 wounded, with more than 1 million Lebanese displaced, according to official figures. Hezbollah fighters engaged Israeli forces in fierce ground clashes, destroying at least three Merkava tanks with guided missiles in the Kfar Tebnit and Ali al-Taher hills area. The resistance group said it repelled a four-day Israeli offensive toward the strategic heights overlooking Nabatieh. "The Kfar Tebnit-Ali al-Taher region will remain impregnable to enemy advances," Hezbollah said in a statement, vowing its fighters would create "Karbala epics" in defense of Lebanon — a reference to the seventh-century Battle of Karbala, which for Shia Muslims symbolizes sacrificial resistance against oppression. Hezbollah field sources reported intense clashes early Friday involving heavy exchanges of fire, artillery shelling and rocket fire. Hezbollah fighters engaged in direct combat around the Ali al-Taher hill, simultaneously targeting several Israeli positions and troop concentrations with rockets and heavy missiles. The group confirmed it struck an Israeli military vehicle near Kfar Tebnit, causing it to catch fire. Israeli forces attempting to advance under cover of smoke and flares to evacuate casualties came under heavy rocket and mortar fire. Israeli sources reported at least five soldiers killed and 17 others injured in the clashes. The military officially acknowledged the deaths of four soldiers, including a battalion commander, with Israeli media reporting that the 52nd Battalion of the 401st Armored Brigade was ambushed overnight with guided missiles. "With profound sorrow, we awoke to the bitter news of the falling of four of our sons in battle in Lebanon, including Lieutenant Colonel Dor Ben Simhon, commander of Battalion 52 in the 401st Brigade," Israeli president Isaac Herzog wrote on social media. Local media reported that at least four helicopters were seen landing to evacuate wounded soldiers, with Israeli media describing the incident as "very hard" in south Lebanon. Israeli artillery shelling also targeted the Kfar Jouz and Jabal al-Rafie areas.
Israelis Invaded Lebanon And Then Cried Victim When Their Soldiers Got Killed, And Other Notes - Caitlin Johnstone - In a move that surprised precisely zero people, Israel once again bombed the shit out of Lebanon while Netanyahu continued to insist that the IDF will continue its extensive occupation of Lebanese territory. Israel’s actions resulted in Tehran calling off scheduled peace talks with Washington, but now we’re seeing reports that Israel and Hezbollah have agreed to another ceasefire. Israel pretty much never abides by its ceasefire agreements in Lebanon, but we’ll see what happens I guess. One major factor in this new development may have been Iran’s threat to bomb Israel without warning if Trump doesn’t pressure Netanyahu to end the war in Lebanon, which we learned about from a recent report by Drop Site News. President Trump and Vice President JD Vance have been creating viral content with tough talk about Israel’s need to make peace and stop killing people in Lebanon, but all that matters in this instance is action. Either they’re willing to exert the leverage they have over Israel to make sure this peace deal happens or they’re not. If Israel keeps sabotaging the agreement without suffering severe consequences from Washington, we may safely conclude that the Trump administration was all talk. And in case anyone’s unclear, Trump will never deserve any “credit” for making peace with Iran, even if he does end up pushing Israel to comply with the deal. You don’t get praise for starting an unprovoked war of aggression and then losing. That’s not a thing. Zionists are screaming bloody murder about Hezbollah killing a tank crew of four Israeli soldiers in southern Lebanon, with war propagandist Mark Levin taking to Twitter to say that “Israel will hit back very hard” and that “No MOU or final agreement will change who these terrorists are,” while Israel’s national security minister Itamar Ben-Gvir proclaims “For every tear of an Israeli mother, a thousand Lebanese mothers must weep. All of Lebanon must burn!” From all this melodramatic garment-rending and victim-LARPing you’d assume the four Israelis were killed in their beds in Tel Aviv, not traveling by tank through a foreign country they’d invaded. As Ryan Grim put it, “I have never heard of a country invading a neighbor and then calling it unfair that their soldiers died in that invasion. I don’t think Meanwhile instead of attacking Trump for failing to do enough to make peace, Democrats are calling him a weak little bitch for not continuing the war, and for agreeing to ensure $300 billion in reconstruction financing instead.“Iran took Trump to the cleaners with this so-called understanding,” Senate Minority Leader Chuck Schumer said on the Senate floor on Thursday, adding, “Are my colleagues on the other side of the aisle prepared to send Iran $300 billion when economic needs are so severe here at home? That’s what Trump wants them to do.”“With $300 billion, we could end homelessness, fund cancer research for 40 years, and give every child free pre-K for over 7 years. Instead, Trump is sending it to Iran,” tweeted Senator Amy Klobuchar.“Here’s what this deal basically is: Iran makes zero concessions, and the United States lets Iran trade oil for free and commits to give them $300 billion in reparations,” said Senator Chris Murphy.“Trump is touting a ‘deal’ that promises to lift all sanctions, allow Iran to export oil and potentially charge tolls, and hand over more than 300 billion dollars to that country,” said Senator Adam Schiff, adding that the deal “looks more like a surrender.”These prominent Democrats make it sound like Trump is just taking $300 billion from the American taxpayer, when according to Reuters the financing for the deal “will be comprised entirely of private-sector funds.” Democrats are essentially running the same bogus “Obama gave Iran pallets of cash” attack that Republicans used to use when slamming the 2015 JCPOA.More importantly, how revealing is it that these warmongering freaks are suddenly pretending care about how much $300 billion could do to help ordinary Americans? Whenever anyone tries to nudge the party an inch to the left on universal healthcare or whatever you see Democratic Party officials wagging their fingers at them telling them there’s no money for such pie-in-the-sky fantasies, but as soon as they get an opportunity to push for more war they’re out there saying they could use all that peace money to end homelessness. All of which will of course be right out the window when it comes time to vote for the next $1.5 trillion military budget.Democrats are such obnoxious liars. Their sleaziness is exceeded only by Trump supporters claiming their president deserves a Nobel Peace Prize for losing a war he started.Anyway, things are a mess. We’ll see how this all plays out.
Iran warns of predetermined ‘reciprocal measure’ in case of US deal breach -Iran’s top security body has warned of a predetermined countermeasure in the event of a US violation of the newly signed memorandum of understanding between the two countries. The Supreme National Security Council (SNSC) issued a message on Friday, two days after Iranian President Masoud Pezeshkian and his American counterpart Donald Trump remotely signed the MoU that brings about a permanent end to the illegal US-Israeli war of aggression against the Islamic Republic. Leader of the Islamic Revolution Ayatollah Seyyed Mojtaba Khamenei hailed Iranian officials’ efforts to reach the agreement, while noting that Trump used various leverage points out of desperation. The SNSC’s Secretariat assured the Leader and the Iranian nation that it will show no leniency in carrying out Ayatollah Khamenei’s orders in safeguarding the rights of the Iranian people and the Resistance Front, honoring the blood of martyrs, and advancing future talks on the basis of the Islamic Republic’s interests and welfare. The secretariat also noted that it “will not rest until the full rights of the Iranian people are secured and the pure and sacred blood of our martyrs is avenged.” “In this regard, with complete distrust of the treacherous and covenant-breaking enemy, and with precise monitoring of the process of negotiations and the implementation of the agreements, should any violation or breach occur on the American side, a reciprocal measure will be taken according to the predetermined plan.” The 14-point deal, which includes a commitment from both sides to hold further talks on a final agreement in the next 60 days, was finalized following intensive mediation efforts by Pakistan and support from other regional countries. It calls for a permanent end to hostilities across all fronts, including Lebanon, the phased lifting of US sanctions, the removal of the naval blockade on Iran within 30 days, and the restoration of commercial traffic through the Strait of Hormuz. It also includes a US-backed reconstruction and economic development plan for Iran worth at least $300 billion, oil export waivers, the release of Iran’s frozen assets, and a renewed Iranian commitment not to seek nuclear weapons, while further negotiations continue over Tehran’s enriched uranium stockpile. The MoU has triggered sharp criticism in Washington, where some lawmakers argue that months of military escalation imposed heavy costs on the United States while yielding significant gains for Iran.
Israel Has Killed More Than 1,000 Palestinians in Gaza Since So-Called Ceasefire Deal Was Signed in October 2025 - Israeli attacks in Gaza since the so-called ceasefire deal was signed in October 2025 have now killed more than 1,000 Palestinians, according to Gaza’s Health Ministry, as the IDF has continued its constant violations of the agreement. The Health Ministry said that over the previous 24 hours, Israeli attacks killed two Palestinians in Gaza, and six Palestinians who succumbed to wounds from previous strikes were added to the death toll, bringing the total number of Palestinians killed since the deal was signed to 1,005. Another 3,157 Palestinians have been wounded in the time, meaning there have been more than 4,000 Palestinian casualties in the eight-month period. Mourners react during the funeral of six-year-old Palestinian girl Mennatallah Abu Libda, who was killed in an Israeli strike on a tent encampment for displaced families, according to medics, in Khan Younis in the southern Gaza Strip, May 25, 2026. Israeli attacks continued in Gaza on Wednesday, with witnesses telling the Anadolu Agency that an Israeli strike hit beachgoers in the al-Mawasi tent camp in southern Gaza. At least two Palestinians were killed, and six were wounded. The report said that the area that was bombed was “crowded with beachgoers and displaced families, many of whom had sought refuge by the sea as their only escape from soaring temperatures and deteriorating living conditions in displacement camps.” Besides the constant strikes, Israel has also violated the deal by taking more territory in Gaza. After the ceasefire agreement was signed, IDF troops occupied about 53% of Gaza, but that has increased to about 60%, and Israeli Prime Minister Benjamin Netanyahu has said that he ordered the military to expand it to 70%. In recent days, Palestinians have reported IDF troops advancing the “yellow line,” the vague boundary that separates the IDF-occupied side of Gaza from the rest of the Strip, and several families were reportedly displaced in Gaza City on Tuesday as Israeli troops pushed tanks into the area. The US and Israeli officials have accused Hamas of violating the ceasefire deal by not laying down its weapons, but the agreement that was actually signed didn’t commit Hamas to disarmament. The two sides agreed to a US proposal that called for the “demilitarization” of Gaza as a framework for negotiations, but the issue of disarmament was meant to be worked out in follow-up negotiations. Hamas has also maintained that it won’t disarm unless there is movement toward the establishment of a Palestinian state. Negotiations on implementing the US plan for Gaza have been ongoing, but there’s been no sign of progress.
British Royal Marines Board and Seize Russia-Linked Tanker in the English Channel - - On Sunday, British Royal Marines boarded and seized an oil tanker in the English Channel that the UK says is part of Russia’s “shadow fleet,” a term Western countries use to describe vessels that ship Russian oil despite US and European sanctions.According to ship-tracking data, the tanker Smyrtos was sailing under the Cameroonian flag, had departed the Russian Baltic Sea port of Ust-Luga, and was bound for Port Said, Egypt, before being intercepted by British forces.The British Ministry of Defense said the operation to seize the tanker lasted six hours and that the ship would “provisionally move to an anchorage off the South Coast of England and will be monitored for any environmental or safety concerns.”Several other tankers allegedly part of Russia’s “shadow fleet” have been seized by France and other European countries over the past year, but Sunday’s incident marks the first time a ship was intercepted in the English Channel.British Prime Minister Keir Starmer had been threatening for some time to take action against Russian-linked tankers and said on Sunday that the seizure of the Smyrtos “delivers yet another blow to Russia and reminds those fueling Putin’s war in Ukraine that we will not let them hide.”The incident comes as the US has dramatically stepped up its attacks and seizures of oil tankers, starting last year off the coast of Venezuela, and extending seizures deep into the Atlantic Ocean and in the Indian Ocean. In its enforcement of the blockade on Iranian ports, the US has bombed at least nine commercial ships and killed at least three Indian mariners in one of the attacks.
Russian Warship Fires Warning Shots in the English Channel - The Russian military said on Tuesday that a Russian warship fired warning shots toward a British yacht in the English Channel, an incident that occurred two days after British Royal Marines boarded and seized an oil tanker that had departed Russia.According to Newsweek, the incident on Tuesday occurred about 20 miles south of the Isle of Wight, with the two vessels about 500 yards apart. The Russian Defense Ministry said that the yacht was on a course that would bring it dangerously close to the Russian frigate Admiral Grigorovich.The ministry said that the yacht ignored warnings, signal flares, and a siren before the Russian warship fired warning shots with small arms across the bow, prompting the yacht to alter course. According to British officials, a couple in their 60s was aboard the private vessel at the time. British warships typically shadow Russian naval vessels as they transit the English Channel, and according to British media, the Admiral Grigorovich was being shadowed by the Royal Navy patrol ship HMS Mersey at the time of the incident. While the shooting appears to be a minor incident, it highlights the tensions in the region following the British seizure of the tanker Smyrtos, which had departed the Russian Baltic Sea port of Ust-Luga and was bound for Port Said, Egypt, before being intercepted by British forces. While NATO countries have seized several Russia-linked tankers over the past year, the incident marked the first in the English Channel. Tensions are also soaring in Eastern Europe near the Russian and Ukrainian borders as drones have repeatedly entered NATO airspace, and the more than four-year war continues to escalate. Russia has ramped up its bombardments of Ukraine, which it says is a response to rising civilian casualties in Ukrainian attacks on Russian territory, which are supported by US and NATO intelligence.
Russia Says Ukrainian Drone Hit Bus Carrying Children in Russia's Bryansk Region -- Russian officials said on Wednesday that a Ukrainian drone hit a bus carrying a children’s soccer team from Belarus in Russia’s Bryansk Oblast, as civilian casualties continue to rise in both Ukraine and Russia.For its part, the Ukrainian military denied responsibility, claiming that it wasn’t carrying out drone attacks in Bryansk at the time. Yegor Kovalchuk, the acting governor of Bryansk, called the attack a “completely deliberate strike on civilian transport on a busy highway.”At least one woman was killed in the attack, and six people, including four children, were wounded. A Belarusian law enforcement official told RT that the woman was the wife of the team’s coach.Russia has recently dramatically ramped up its missile and drone bombardments of Ukraine, which it says is a response to drone attacks on civilians in Russia and Russian-controlled areas of Ukraine, including a May 22 Ukrainian drone attack that hit a college in Starobelsk in the Luhansk Oblast and killed 21 students. On Tuesday night, Ukrainian officials said that Russian attacks in eastern Ukraine killed at least four people and set homes and a shopping center on fire. Earlier this week, a heavy Russian bombardment in Kyiv and other cities killed at least 11 civilians. Ukraine is known to use intelligence from the US and NATO for its long-range drone attacks inside Russia, and the US has helped build up Ukraine’s drone industry, meaning that such attacks always risk a potential escalation between Russia and NATO.
Oil refinery in Moscow hit by large-scale Ukrainian drone attack, mayor says Moscow came under one of the largest Ukrainian drone attacks since the start of the war, with an oil refinery struck and around 200 drones intercepted on their approach to the Russian capital, Mayor Sergey Sobyanin said Thursday. In a Telegram post, Sobyanin said Russian air defense forces were continuing to repel what he described as a large-scale attack. “Air defense forces are continuing to repel a large-scale attack. Several drones managed to reach the MNPZ,” Sobyanin said, referring to a major oil refinery in Moscow. The largest reported attack before Thursday occurred on May 17, when Russian authorities said air defenses intercepted 81 drones approaching the capital. Authorities also reported downing 61 drones on May 7 and 38 on May 16. In a separate statement, the Russian Defense Ministry said air defense systems destroyed 555 Ukrainian drones across the country overnight. Meanwhile, Moscow's Sheremetyevo Airport evacuated passengers to designated safe areas during the attack, marking the first such measure at the airport since the conflict began, according to Russian authorities. Ukrainian President Volodymyr Zelenskyy confirmed the attack on Moscow oil refinery. “Last night, our long-range sanctions reached the Moscow region again: for the second time in a week, the Moscow oil refinery was hit,” he said in a statement on Telegram. Zelenskyy added that other “targets” in Russia’s Rostov region, as well as areas in Ukrainian territories under Russian control, were also struck. Separately, Ukraine’s General Staff confirmed the operation, saying that in addition to the Moscow oil refinery, a railway bridge over the North Crimean Canal was hit. It also said the Gukovo oil depot in Russia’s Rostov region was struck. “In addition, our forces hit a road bridge over the Kalka River near the village of Hranitne in the Donetsk region, as well as a railway bridge over the North Crimean Canal in the Razdolnensky area of Crimea,” the statement said.
Black Rain Falls on Moscow After Ukrainian Drone Attack Hits Oil Refinery - Black oil-filled raindrops fell on parts of Moscow on Thursday after a major Ukrainian drone attack targeted the city and hit an oil refinery as the Russia-Ukraine war continues to escalate.Thick black smoke could be seen in the skies of Moscow following the attack, and at least 17 people were wounded by the drones, according to Andrei Vorobyov, the governor of the Moscow Oblast.According to the Russian news agency TASS, more than 190 Ukrainian drones were downed in the Moscow region, part of a swarm of 555 drones that were intercepted across Russia, one of the largest Ukrainian attacks on Russian territory of the war. At least one person was killed in Russia’s southern Rostov region.According to the BBC, the attack marked the third time this month that Ukrainian drones targeted the Kapotnya refinery in southeast Moscow, which was hit by a wave of drones on Thursday. Ukraine has continued to ramp up its attacks on Russian oil infrastructure as its NATO backers have escalated seizures of ships carrying Russian oil. Ukrainian officials said the attack on Moscow was a response to Russia’s ramped-up missile and drone attacks on Ukraine, which Russian officials say is retaliation for the rising civilian casualties caused by Ukrainian drones, as the two sides are locked in a pattern of escalation.More escalations appear to be coming as Russian Foreign Minister Sergey Lavrov said that in response to Thursday’s drone, Russia will launch strikes in Ukraine on a “mass scale.”Ukraine is known to use intelligence from the US and NATO for its long-range drone attacks inside Russia, and the US has helped build up Ukraine’s drone industry, meaning that such attacks always risk a potential escalation between Russia and NATO.
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