WANA (Sep 04) – The Speaker of the Parliament declared that the rapid depletion of strategic reserves, an unprecedented surge in bond yields, and a sharp rise in futures oil prices have placed US Treasury Secretary Scott Bessent on the edge of a precipice.

 

In a post addressed to Bessent on X, Iranian Parliament Speaker Mohammad Bagher Ghalibaf urged the US official to closely observe Oman futures oil prices, US Treasury bond yields, and the status of strategic petroleum reserves. Ghalibaf stated that Bessent should exert all possible efforts to manipulate futures oil prices, noting that his entire career hinges on it.

 

He added that the Treasury Secretary could either continue drawing down strategic oil reserves beyond safe limits—and witness the collapse of underground salt caverns due to extreme depletion—or seek refuge in Texas and pray that the storage wells do not collapse, remarking that the world is watching the situation unfold.

 

To clarify the Parliament Speaker’s tweet, three context points were outlined:

 

First, Bessent has engaged in buyback purchases in the US debt market to lower long-term bond yields—particularly 10-year yields—hoping to reduce borrowing costs ahead of the midterms. However, the market has largely resisted these interventions, with yields remaining high or rising further.

 

Critics, including Wall Street figures such as Stanley Druckenmiller, consider these measures ineffective and view the market as being on the brink.

 

Second, due to the war with Iran and disruptions in the Strait of Hormuz, the Trump administration, via the Department of Energy, has released massive volumes from the Strategic Petroleum Reserve (SPR) through emergency exchanges. Reserve levels have dropped to their lowest point since the early 1980s, approaching or falling below 300 million barrels—near the statutory limit of roughly 252 million barrels.

 

These strategic reserves are stored in underground salt caverns in Texas and Louisiana, including the Bryan Mound site. Over-depletion carries structural risks, including hydraulic pressure issues and potential cavern collapse or permanent damage.

 

Third, while some traders anticipated lower futures prices based on signals from Bessent, futures prices for Oman and UAE crude—reflecting market expectations regarding alternative routes bypassing Hormuz—have crossed $100 in recent days. The US had relied on dampening these futures prices through psychological signaling and reassurances regarding the southern Hormuz passage.

 

However, rising futures prices, combined with depleting reserves and surging bond yields, have created a complex situation for Bessent and the Trump administration, which indicators lay bare despite efforts to mask it through rhetoric on Iran.