Suddenly! U.S. oil refinery explosion! Iran's energy infrastructure attacked! U.S. stock index futures plunge mid-session

Iran Situation, Unpredictable!

Since last night, the US-Iran talks have played out like a “Rashomon,” causing intense fluctuations in global markets. Just now, new developments have emerged in Iran. Iranian media reports that the US and Israel have attacked two of Iran’s energy infrastructure sites.

This news has once again driven oil prices higher. As of press time, WTI crude futures have broken through $91 per barrel, with an intraday increase of nearly 3.8%; Brent crude futures rose by 4%, trading at $99.75 per barrel.

Notably, there have also been unexpected incidents in the US. According to CCTV News, on March 23 local time, an explosion occurred at the Valero refinery in Port Arthur, Texas, with a large plume of smoke rising. The cause of the accident and any casualties have not yet been disclosed.

US stock index futures plunged during trading. As of the time of this report, the S&P 500 futures fell 0.53%, Nasdaq 100 futures dropped 0.58%, and Dow Jones futures declined 0.52%.

Additionally, the stock markets in Japan and South Korea saw significant narrowing of gains. As of press time, South Korea’s KOSPI index was up 1.04%, after initially rising over 4%; Japan’s Nikkei 225 index was up 0.93%, after nearly 2.5% earlier.

Iran: US and Israel Attack Two Energy Infrastructure Sites in Iran

According to Xinhua News Agency citing Iran’s Fars News Agency on the 24th, the US and Israel attacked two energy infrastructure sites located in Isfahan in central Iran and in Hormozgan Shahr in the southwest.

The report states that the natural gas company building and gas pressure reduction station in Isfahan were targeted, with some facilities and nearby residences damaged. The natural gas pipeline at the Hormozgan Shahr power plant was also attacked, but no casualties were reported.

Previously, Iran had repeatedly warned that if its fuel and energy infrastructure were attacked, the US and its allies would target all energy infrastructure, information technology systems, and seawater desalination facilities in the region.

According to CCTV News, on the 23rd local time, a senior Iranian security official stated that despite US propaganda, Iran is prepared to respond strongly if its critical infrastructure is attacked.

The official said Iran’s assessment of the current battlefield situation remains unchanged, and that any action targeting infrastructure—even small or symbolic—would trigger multiple responses. He also stated that Iran has the capacity to maintain power and other infrastructure operations and believes that such attacks are doomed to fail.

On the 23rd local time, Iran’s Energy Minister Ali-Akbar Mehrabian said that power plants across Iran are ready to generate electricity, with staff working around the clock to ensure water and power supply are unaffected. He noted that it is currently outside peak electricity demand, and power generation capacity is sufficient.

Mehrabian also stated that threats by the US and Israel to attack Iran’s power facilities violate international law, and attacks on Iran’s power infrastructure are equivalent to attacks on the Iranian people.

US Stock Index Futures Decline

Despite hopes that tensions in the Middle East might ease, uncertainty persists, leading to declines in US stock index futures, erasing earlier gains.

As of the time of this report, the S&P 500 futures fell 0.53%, Nasdaq 100 futures dropped 0.58%, and Dow Jones futures declined 0.52%.

The conflict between the US, Israel, and Iran has shaken the Middle East, raising concerns that it could trigger a global energy crisis and push inflation higher. US crude oil futures have already increased by over 30% this month. The war has nearly completely blocked commercial shipping through the Strait of Hormuz, forcing Persian Gulf oil producers to cut millions of barrels of oil daily.

A report from Royal Bank of Canada Capital Markets states: “It’s unclear how much progress has been made in behind-the-scenes negotiations, or whether the Islamic Revolutionary Guard Corps, which currently controls the Strait of Hormuz, intends to reach a settlement. For physical markets, the real determinant may be vessel transportation rather than verbal statements.”

Recently, although most shipping through this critical route remains halted, a few ships have successfully departed the Persian Gulf. According to Bloomberg, the first supertanker carrying Iraqi crude oil was observed passing through the Strait of Hormuz after nearly closing the passage.

Last weekend, Trump threatened to bomb Iran’s energy infrastructure unless the Strait of Hormuz was fully open within 48 hours. Subsequently, he withdrew that threat. Sources say Trump’s decision to halt strikes was aimed at controlling oil prices, which he acknowledged on Monday. “Once an agreement is reached, oil prices will fall like a free fall,” Trump stated.

(Article source: Securities Journal)