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Two hopefuls drop out of Iran presidential race: Update

  • Spanish Market: Crude oil
  • 16/06/21

Mohsen Mehralizadeh, the only reformist candidate approved to participate in this week's Iranian presidential election, has withdrawn from the race leaving former central bank governor Abdolnaser Hemmati as the sole non-conservative on the ballot.

Former member of parliament Alireza Zakani, a conservative, also dropped out today and thrown his weight behind the strong favorite, chief justice Ebrahim Raisi.

Mehralizadeh, who served as vice-president during former president Mohammad Khatami's second term in 2001-05, announced his withdrawal in a letter to the ministry of interior in the early hours of today. He did not explicitly say why he pulled out, although his move came one day after Hadi Khamenei — a prominent reformist cleric and brother of supreme leader Ayatollah Ali Khamenei — called on either Mehralizadeh or Hemmati to drop out of the race in support of the other.

"I ask you… to form an alliance with each other, so that with the presence of one of you in the competition, you can sow the seeds of hope in the hearts of the supporters more than before," Khamenei said.

Mehralizadeh has yet to publicly back Hemmati, who has been making a late push to win over voters on ahead of the 18 June election by announcing he will invite foreign minister Mohammad Javad Zarif to serve in his cabinet either as vice- president or foreign minister.

"Iran's economic development will not be possible without strong diplomatic engagement with the international community," Hemmati said. "My administration will be after the removal of sanctions and the use of foreign policy to achieve political development."

Hemmati also secured an indirect endorsement from former president and reformist heavyweight Mohammad Khatami today in an open letter commending Mehralizadeh for dropping out so that the reformist and centrist votes would not be split.

But with just two days until voting begins and with continued signs of bias within the political establishment towards Raisi, the office still appears to be his to lose. Latest polls from state-linked Iranian Students Polling Agency (ISPA) show Raisi with 61pc of the vote, well ahead of his closest challenger Mohsen Rezaei, another conservative, with 8pc.

Zakani's decision to drop out will also strengthen Raisi's chances, particularly after securing his public endorsement. As of 14 June, Zakani was being projected to win around 3pc of the vote.

"Considering the great success of Ayatollah Raisi, I consider him to be righteous and I will vote for him," Zakani said. "I hope that with his election, fundamental reforms will be implemented in the country."

Should any of the other two remaining conservative candidates — former nuclear negotiator Saeed Jalili, and first deputy speaker of parliament Amir-Hossein Qazizadeh Hashemi — also withdraw from the race, that would again boost Raisi's chances further.

Campaigning began on 28 May and will continue until 24 hours before the start of voting on 18 June. If no candidate secures at least 50.1pc of the vote, the two highest polling candidates will compete in a runoff on 25 June.


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SLB taking steps to offset tariffs: Update


25/04/25
25/04/25

SLB taking steps to offset tariffs: Update

Adds details from call. New York, 25 April (Argus) — Oilfield services contractor SLB said it is taking proactive steps to offset the impact of US tariffs by reviewing its supply chain and manufacturing network, pursuing exemptions and talking to customers to recover related cost increases. "We have made progress on all these fronts in the last two weeks, and we are stepping up those actions across the organization as we speak," chief financial officer Stephane Biguet told analysts after the company reported first quarter results today. SLB is partly protected from the overall tariff fallout given 80pc of total revenue comes from international markets, as well as its in-country manufacturing and local sourcing efforts. But other areas are exposed to increasing tariffs, such as imports of raw materials into the US, as well as exports from the US subject to retaliatory action. Under the current tariff framework, most of the likely effects come from trade activity between the US and China. "As the second quarter progresses and ongoing trade negotiations continue, we will hopefully gain better visibility of where tariffs may settle and the extent to which we will be able to mitigate their effects on our business," Biguet said. In the current climate, SLB says customers are likely to take a more cautious approach to near-term activity. Given industry headwinds from volatile oil prices and demand risks, SLB expects global upstream investment to decline this year from 2024, with customer spending in the Middle East and Asia holding up better than elsewhere. SLB reported a "subdued" start to the year as revenue fell 3pc in the first quarter from the same three months of 2024. The company noted higher activity in parts of the Middle East, North Africa, Argentina and offshore US, along with strong growth in its data center and digital businesses in North America. However, those gains were more than offset by a larger-than-expected slowdown in Mexico, a slow start in Saudi Arabia and offshore Africa, and a steep decline in Russia. Even so, SLB remains committed to returning a minimum of $4bn to shareholders through dividends and share buybacks this year. "The industry may experience a potential shift of priorities driven by changes in the global economy, fluctuating commodity prices and evolving tariffs — all of which could impact upstream oil and gas investment and, in turn, affect demand for our products and services, said chief executive officer Olivier Le Peuch. "In this uncertain environment, we remain committed to protecting our margins, generating strong cash flow and delivering consistent value." First quarter profit of $797mn was down from $1.07bn in the same three months of 2024. Revenue of $8.5bn compared with $8.7bn last year. SLB is the last of the top oilfield services firms to post first-quarter results. Halliburton and Baker Hughes reported earlier this week. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Phillips 66 ups crude switching at Texas refinery


25/04/25
25/04/25

Phillips 66 ups crude switching at Texas refinery

Houston, 25 April (Argus) — US independent refiner Phillips 66 completed a project in the first quarter that allows it to adjust more of the crude slate at its 265,000 b/d Sweeny refinery in Old Ocean, Texas. The project will allow the company to switch about 40,000 b/d between heavy and light crude, Phillips 66 said today in an earnings release. The flexibility project was completed during a first quarter turnaround. Several US refiners are exploring ways to run more lighter crude grades in the wake of new US tariffs and other actions that may limit the supply of heavier and medium grade crudes imported from trading partners. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Kurdish gas plans may boost Iraqi oil exports


25/04/25
25/04/25

Kurdish gas plans may boost Iraqi oil exports

Dubai, 25 April (Argus) — Plans for a significant increase in natural gas production in Iraq's semi-autonomous Kurdistan region over the next 18 months could not only help address the country's chronic power shortages but also enable Baghdad to boost its oil exports. The Pearl Petroleum consortium — which comprises Abu Dhabi-listed Dana Gas, Sharjah-based Crescent Petroleum, Austria's OMV, Hungary's Mol, and Germany's RWE — aims to increase gas production capacity in Kurdistan to 825mn ft³/d by the end of next year, representing a more than 50pc increase from current output. The plan involves expanding the capacity of the region's sole gas-producing field, Khor Mor, to 750mn ft³/d by the first quarter of 2026, and adding up to 75mn ft³/d from the Chemchemal field by the end of 2026. According to a source at Pearl, the development of Chemchemal is a key priority for the companies, as it is believed to have reservoirs comparable to those of Khor Mor. Under a 2019 agreement, the additional gas from the expansion project will be sold to the Kurdistan Regional Government (KRG) for a 20-year term, which should help eliminate the region's frequent power outages, particularly during peak summer months when demand for air conditioning is high. The Kurdistan region will also be well-positioned to supply any excess gas to the rest of Iraq. The federal government in Baghdad had previously approved a plan to import approximately 100mn ft³/d of gas from Khor Mor to power a 620MW plant in Kirkuk province, but no formal agreement has been signed to date. "The federal ministry of electricity and Crescent Petroleum have already met to finalise the agreement, which is ready for signature and awaiting implementation," the Pearl source said. "The infrastructure needed to support the sale of this quantity of gas is also in place." The plan has faced delays partly because of Iran's long-standing influence over Iraq and the potential impact such an agreement with the Kurdistan region could have on Baghdad's reliance on Iranian gas and power. However, the revival of US president Donald Trump's ‘maximum pressure' campaign against Tehran is forcing Baghdad to get serious about seeking alternative energy sources, with the Kurdistan region emerging as a viable option. Crude Export Boost Formalising the deal to import Kurdish gas would allow Baghdad to allocate more oil for export, as it would reduce the need to burn crude for power generation. Argus estimates that Iraq typically burns between 50,000 b/d and 100,000 b/d of crude in its power stations, depending on the season, and has recently increased imports of gasoil for power generation. By the time Iraqi Kurdistan has fully ramped up its additional gas capacity, Iraq's Opec+ crude output target will be 200,000 b/d higher than it is today, based on the group's latest production plans. By Bachar Halabi and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Water levels delay Tennessee River lock reopening


24/04/25
24/04/25

Water levels delay Tennessee River lock reopening

Houston, 24 April (Argus) — The US Army Corps of Engineers (Corps) will delay the reopening of the Tennessee River's Wilson Lock by three weeks after high floodwater disrupted repair plans. The Wilson Lock is now planned to reopen in mid-June or July, the Corps said this week. The lock's main chamber has been closed since September after severe cracks were found in the structure. The Corps initiated evacuation procedures so personnel and equipment could be removed before any water entered the dewatered lock and ruined repairs after high water appeared too close to the lock's edge. The water did not crest above the temporary barrier the Corps installed to keep water out. Delays at the lock averaged around 10 days as of 24 April, according to the Corps. Barge carriers fees have been in place for each barge that must pass through the auxiliary chamber of the lock since 25 September, when the lock first closed. Restricted barge movement placed upward pressure on fertilizer prices in surrounding areas as well. The lock still requires structural repairs to the main chamber gates, including the replacement of the pintle components, the Corps said. This is the fourth opening delay the Corps have issued for the Wilson Lock, with the prior opening dates being in November , then April and then in June . The Wilson Lock will enter its eighth month of repairs next month. By Meghan Yoyotte and Sneha Kumar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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