Trump speaks out again! Major warning from Iran! Kuwait's power and seawater desalination plant attacked

The situation is fluid!

On April 3, according to Xinhua News Agency, U.S. President Trump said in a post on social media on the 3rd: “Give it a little more time, and we’ll easily open the Strait of Hormuz, seize the oil, and make a fortune.”

Image source: Screenshot of Trump’s social media account

According to CCTV News on April 3 local time, in recent days, three large cargo vessels operated by Oman have successfully passed through the Strait of Hormuz. It is understood that this fleet consists of two supertankers and a liquefied natural gas (LNG) carrier. Based on relevant tracking data, the three vessels have arrived off the sea of Muscat, Oman, and have completed entry to port. The data show that the two oil tankers are each loaded with about 2 million barrels of crude oil, while the LNG carrier is empty. It is understood that all three vessels are managed by an Omani ship management company, but the company has not yet commented on the matter.

In addition, the latest news indicates that Leviathan, Israel’s largest natural gas field, has resumed production, which may ease tensions in a tight supply market. After conflicts broke out on February 28, Israel temporarily shut down part of its natural gas fields for security reasons. It is understood that Leviathan is operated by Chevron, located in the eastern Mediterranean, and is Israel’s most important natural gas asset, as well as a key source of natural gas supply for Egypt.

An Iranian military statement said that if the United States dares to take action against Iranian infrastructure, Iran will destroy “all assets and infrastructure” of the United States and Israel in the Middle East. The statement was a response to remarks by U.S. President Trump in recent times, repeatedly threatening to disrupt Iranian bridges, power plants, and energy infrastructure, among other things.

Iran issues a warning

On April 3, according to Xinhua News Agency citing Iranian media, Iran’s military issued a statement saying that if the United States dares to take action against Iranian infrastructure, Iran will destroy “all assets and infrastructure” of the United States and Israel in the Middle East.

The statement said that if these threats are carried out, Iran will destroy “all assets and infrastructure” of the United States and Israel in the Middle East; the scope of the strike may also be further expanded to “important assets in the Middle East of the United States’ followers.”

The statement also said that countries that host U.S. military bases, if they hope to avoid being affected, should prompt the U.S. military to withdraw from their territory.

On April 3 local time, Iran’s Army commander Ali Jahanshahi issued a warning to the U.S. and Israel on social media, saying that it would “send enemy soldiers back to the Stone Age.”

Jahanshahi also said that Iran’s army assault forces have kept a high state of readiness for years and have conducted intensive training. “Iran’s land is the graveyard of invaders; if you don’t believe it, come and give it a try.”

The day before, Iran’s Armed Forces spokesman Abolfazle Shekarshi said in an interview that the Strait of Hormuz will continue to be closed to the United States and Israel; Trump’s launching of a war against Iran is based on a wrong calculation. Iran is waiting for the United States to launch ground operations, at which point Iran will give the United States a lesson, making it so that the United States will never again entertain thoughts of aggression toward any country—no matter how weak it may be in the world.

Shekarshi emphasized that Iran’s armed forces are prepared and are waiting for the U.S. military to come to their doorstep, to create a disaster for the Americans in close-quarters combat, so that future generations of Americans will absolutely not dare to volunteer to join the military.

A power and seawater desalination plant in Kuwait was attacked

According to Xinhua News Agency citing Kuwait News Agency on April 3, Fatima Hayat, a spokesperson for Kuwait’s electricity, water, and renewable energy, said that an attack launched by Iran that day caused damage to a power and seawater desalination plant in Kuwait.

The report said that technical and emergency response teams immediately began handling the incident to ensure the equipment continues to operate.

On the same day, a fire broke out at the Habshan natural gas facility in the United Arab Emirates. It is understood that the facility has been temporarily shut down. At present, there are no reports of casualties. This marks the second shutdown of the natural gas facility since the outbreak of Middle East hostilities at the end of February.

The Habshan natural gas facility is one of the UAE’s important energy infrastructure facilities, performing functions such as natural gas processing and transportation.

Also, according to a report from CCTV News, on the morning of April 3 local time, Israel’s northern region was hit by Iranian missile attacks. The Israeli Defense Forces assessed that the ballistic missiles fired by Iran carried cluster munitions.

It is reported that there were a total of 6 impact sites in Haifa and Kiryat Ata. In Kiryat Ata, the munitions hit a residential building, injuring one person, and two cars caught fire; in Haifa, some roads were damaged, with no reports of casualties.

Morgan Stanley: Global LNG market is extremely tight

In its latest report, Morgan Stanley said that the global LNG market has entered an extremely tight phase, with about 20% of supply still offline. The “in-transit inventory” that had departed from Qatar before the conflict has essentially been delivered, meaning the April spot market will be even tighter.

Morgan Stanley analysts Devin McDermott said that even if the situation eases somewhat in the short term, due to the massive supply shortfall, the global market still faces urgent pressure to replenish inventories, which will continue to support price trends.

Morgan Stanley said that a supply shortfall of around 15 million tons (about 4%) is expected in the global LNG market in 2026. The firm originally expected “excess supply expectations” in 2027–2028, but this expectation has been offset by long-term disruptions to Middle East supply and delays to projects.

The Middle East shock is at the core of this round of supply crisis. Due to the war, the Strait of Hormuz has remained sealed for a prolonged period. The strait accounts for about 20% of global LNG shipments, with about 70% flowing to Asia.

Since March, LNG exports from Qatar and the United Arab Emirates have basically come to a halt. Qatar is one of the world’s largest LNG exporters, accounting for about 19% of total global exports, while the UAE accounts for about 1%.

Based on Morgan Stanley analyst assumptions, Qatar and the UAE’s export facilities will undergo a full shutdown for two months (from March to April); the two damaged production lines of Ras Laffan (the world’s largest LNG plant) (12.8 mtpa) may face long-term shutdowns lasting up to 3 to 5 years (through 2028); the start time of the North Field gas expansion project is expected to be pushed back to July 2027 (from the original plan of late 2026).

In addition to Qatar, Australia and the United States are also major global LNG exporters, but analysts said that short-term incremental supply cannot make up for the Middle East shortfall.

Without including the Middle East, global LNG capacity utilization in March was as high as 99%, higher than last year’s 97% and also above the five-year average (91%); in April, it is expected to be about 95%. This means global LNG production capacity is running close to full load, with inflexible supply.

Morgan Stanley is bullish on LNG prices for 2026, significantly higher than the forecast from the forward curve.

Analysts expect that the JKM price in the third quarter of 2026 (the Asia LNG benchmark price) will reach 30 dollars/mmbtu, and that the price in the fourth quarter will climb further to 32.50 dollars/mmbtu.

MMBtu (million British thermal units) is an internationally used energy heating value measurement unit, representing 1 million British thermal unit units (Btu).

（Source: Securities Times China）