Iranian drone strikes hit Kuwait’s oil infrastructure before Opec+ supply talks

Iranian drone strikes on Kuwait’s oil infrastructure have intensified Middle East supply-risk premium, with the article saying the attacks caused “severe material damage” and come amid a broader disruption to regional energy flows tied to the Iran-Israel conflict. Brent has already surged more than 50% since the start of the year, peaking at $119.50/bbl in March and holding near $109/bbl, while the Strait of Hormuz remains effectively constrained, limiting tanker traffic and keeping crude markets on edge. Opec+ met against that backdrop and reportedly agreed in principle to raise output by 206,000 b/d in May, but the move is described as largely symbolic while transit through Hormuz remains impaired. The article notes roughly 100 tankers would normally pass through the strait each day and about 20% of global crude flows through the route, underscoring how vulnerable supply remains. Kuwait Petroleum Corporation said fires and damage hit subsidiaries and ministry-linked facilities, while Iran’s Revolutionary Guard also claimed strikes on petrochemical plants in Kuwait, the UAE and Bahrain. For precious metals, the immediate channel is via higher energy prices and broader geopolitical risk, which can support gold as a hedge and inflation proxy if oil stays elevated and the conflict widens. Near-term attention stays on any further attacks on Gulf infrastructure, Opec+ rhetoric around output, and whether tanker traffic through Hormuz can normalize; sustained crude strength would keep inflation expectations and safe-haven demand bid.