Saudi Aramco Could Restore Output Quickly Once Strait of Hormuz Reopens -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 10.8% at $88.38 a barrel.

--European benchmark gas is down 16.2% at 47.28 euros a megawatt hour.

--Gold futures are up 2.8% at $5,247.80 a troy ounce.

--LME three-month copper futures are up 1.9% at $13,161 a metric ton.

TOP STORY:

Saudi Aramco Could Restore Output Quickly Once Strait of Hormuz Reopens

Saudi Aramco said it could restore production within days of the Strait of Hormuz reopening, while warning that prolonged disruption of the waterway poses severe consequences for oil markets and the global economy.

"There would be catastrophic consequences for the world's oil markets, the longer the disruption ?goes on?the more drastic the consequences for the global economy," Chief Executive Officer Amin Nasser told reporters ?on Aramco's earnings call Tuesday.

Normally, around 20% of the world's oil and gas passes through the vital waterway each day, but it has been effectively closed since the start of the Iran war. U.S. naval escorts have been touted as one option to help restart tanker movements through the strait but no formal plans have been laid out.

OTHER STORIES:

EU Should Revise Approach to Nuclear Power, Von der Leyen Says

European Commission President Ursula von der Leyen said that the European Union will earmark 200 million euros ($232.8 million) for supporting investment in innovative nuclear technologies, with resources coming from the bloc's Emissions Trading System.

"Not only will we de-risk investments in these low carbon technologies, we also want to give a clear signal for other investors to join," she said at a nuclear energy summit in Paris on Tuesday.

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Repsol to Grow Shareholder Returns Under 2028 Plan

Repsol said it will grow shareholder returns through 2028 under a plan that balances growing oil-and-gas production and spending on low-carbon projects.

The Spanish energy company said Tuesday that it would return around 3.6 billion euros ($4.19 billion) to shareholders via cash dividends through to 2028. This will be complemented by share buybacks, with dividend per share growing by more than 6% a year, it said.

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U.S. and Western Allies Turn to Reserves to Counteract Gulf Oil Crisis

After the 1973 oil shock, the U.S. and allies swore to maintain emergency stockpiles to make sure there could never be a repeat.

The blockage in the Persian Gulf poses the sternest test the reserves have ever faced.

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Why Iranian Regime Change Would Transform Global Energy Markets

The Iran conflict is rocking energy markets and threatening to squeeze the global economy, but beyond the immediate crisis lies a staggering economic prize-unlocking the oil industry in a nation with one of the world's largest proven reserves.

On Monday, Brent crude surged past $100 a barrel before falling back in volatile trading as the conflict paralyzed the Strait of Hormuz, a narrow passage between Iran and Oman that a fifth of the world's oil and liquefied natural gas flows through. Thousands of ships are stuck outside the Persian Gulf.

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Soaring Gas Prices Are Latest Blow for Auto Industry in Constant Whiplash

When Zach Carabajal saw gas prices skyrocketing, the car salesman sprang into action.

Accustomed to selling sporty Mazdas in the middle of Texas truck country, Carabajal saw an opportunity to capitalize. He pulled together an online video highlighting fuel-efficient vehicles at his Amarillo dealership, from a hybrid SUV to smaller cars.

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Oil, Gas Prices Retreat After Trump Says End of Iran War Is In Sight

Oil and gas prices retreated sharply after President Trump said the war in Iran would end soon, easing market concerns over prolonged disruptions to global supply.

In early European trading on Tuesday, Brent crude plunged 7.2% to $91.88 a barrel, while West Texas Intermediate fell 5.8% to $81.63 a barrel. The global benchmarks closed Monday in the red, after reaching their highest levels since 2022 earlier in the session, touching $119.50 and $103.67 a barrel, respectively.

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Saudi Arabia Pushes East-West Pipeline Toward Capacity Amid Hormuz Disruption

Saudi Arabia is ramping up crude flows through its East-West pipeline network and relying on storage facilities to meet customer demand during one of the largest disruptions to the region's energy flows in years.

The pipeline-a 750-mile system that transports crude from the Persian Gulf to export terminals on the Red Sea-carried about 2.8 million barrels a day before the Strait of Hormuz crisis stemming from the war in Iran. State oil giant Aramco is now moving to push flows toward its 7 million-barrel-a-day capacity as vessels shift loading operations to the western coast.

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China Has Spent Years Preparing for the Iran Oil Crisis

BEIJING-The turmoil in the global energy market from war in the Middle East is exactly the sort of emergency scenario that China has long been preparing for.

Worried that conflict in the region could wreak havoc on its economy by cutting off the supply of oil, Beijing has been spending lavishly to limit how much it needs to import, while building up large stockpiles and diversifying where it gets its energy from.

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Exxon Mobil Plans to Move Its Legal Home to Texas From New Jersey

Exxon Mobil plans to move its legal home to Texas from New Jersey, joining other companies that have flocked to the Lone Star state in search of a more business-friendly environment.

Exxon, which has been incorporated in New Jersey since 1882, plans to ask its shareholders to vote on a proposal to redomicile in Texas. If successful, Exxon will follow Tesla, Coinbase Global and others that have reincorporated in Texas.

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Lindt Shares Sink as Iran Conflict Deepens Consumer Gloom

Lindt & Spruengli's shares slumped after the company lowered its guidance for 2026, citing a bleak consumer mood exacerbated by conflict in the Middle East.

The Swiss chocolatier's cut to growth expectations for the year comes after it booked lackluster sales over the key Christmas period. A continued gloomy mood among consumers and suppressed appetite for the company's wares is a central concern for Lindt as uncertainty rises, Chief Executive Officer Adalbert Lechner said.

MARKET TALKS:

Wheat Export Buyers Hit in War With Iran -- Market Talk

1136 ET - CBOT wheat futures are down 2.3% in morning trade, with the contract shrugging off a weaker U.S. dollar and instead trading negatively on the fallout of the war with Iran. "Middle Eastern countries are big buyers of world wheat, and many have been bombed by Iran now," says Jack Scoville of Price Futures Group. While there are production issues seen in growing areas worldwide stemming from weather, the impact to world export demand for wheat will be closely watched. Corn is down 0.9%, while soybeans are up 0.3% ahead of the USDA's release of its WASDE report. ([e-mail])

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Livestock Start Strong as Hog Slaughters Slip -- Market Talk

1018 ET - Slaughters of hogs for use in pork this week were expected to decline as packers want high weights and plentiful freight vessels. With the gridlock on the Strait of Hormuz and continued hostility toward retail prices, agricultural commodities as a whole are under stress. In a note, Ben Johnson of New Frontier Capital Markets says that hog slaughters this week are expected to total 2.475 million head. That's roughly half-a-percentage point off of the prior week, which was also revised down 9,000 head from a previous total of 2.497 million head. Lean hogs rise 1.3%, while live cattle climbs 0.8%. ([e-mail])

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Grains Mixed Ahead of March WASDE -- Market Talk

0858 ET - CBOT grain futures are mixed in pre-market trade ahead of the release of the March WASDE report from the USDA, scheduled for noon Eastern time. Changes expected from the report are limited, with traders watching how the agency adjusts its outlook for U.S. stockpiles and Brazilian crop estimates. But the focus for traders remains developments out of the war with Iran and how energy futures move due to associated headlines. "Grain volume remained massive overnight with the crude retreat weighing heavily," says Matt Zeller of StoneX in a note. CBOT corn is down 0.2% pre-market, while soybeans are up 0.3% and wheat rises 0.2%. ([e-mail])

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USDA Calls For Increased Competition in Fertilizer Market -- Market Talk

0848 ET - The USDA says that the $12 billion in bridge payments authorized late last year is designed to help U.S. farmers ride out disruptions -- including the gridlock on the Strait of Hormuz that has shipments of much-needed fertilizer ensnared. "This targeted support is designed to help producers in a way in which they see fit," says a spokesperson for the USDA. Farmers in the Corn Belt are set to start planting next month. The USDA says that current issues show that farmers need more options. "Years of high prices-long preceding the current conflict-have sent clear economic signals that American farmers need options," says the spokesperson. "New entrants make the fertilizer marketplace more competitive, farmers more competitive, and the U.S. more competitive." ([e-mail])

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China's Crude Inventories Are Climbing, Kpler Says -- Market Talk

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03-10-26 1206ET