OPEC oil production fell in May to its lowest monthly level in more than two decades, according to a Reuters survey.

The decline was driven by a US naval blockade that curtailed Iranian exports and by reduced shipments from other Gulf producers following Iran’s closure of the Strait of Hormuz.

According to the survey, output from OPEC’s 11 members fell by 1.06 million barrels per day from the previous month to 16.13 million bpd. Reuters data show this was the lowest monthly level recorded since at least 2000.

The figure was well below levels seen during the COVID-19 pandemic in 2020, when collapsing demand triggered a sharp downturn in oil markets. Production data from the United Arab Emirates, which left OPEC on May 1, were not included in the total.

The survey found that the steepest production decline occurred in Iran, reflecting the impact of the US blockade launched on April 13. Iranian crude oil and condensate exports fell to their lowest level in at least six years. Saudi Arabia’s output also continued to decline.

By contrast, sources surveyed by Reuters said Iraq managed to increase production due to stronger domestic consumption. Output in Venezuela and Nigeria also rose during the month.

Eight members of the broader OPEC+ alliance had agreed to raise production quotas for May. However, the conflict involving Iran and the US blockade prevented those increases from materializing.

The Reuters survey is based on oil-flow data from LSEG, shipment information from firms including Kpler, data provided by oil companies and OPEC sources, and information from industry consultants.

SpaceX’s planned initial public offering could pose significant challenges for the German and broader European economies, with concerns mounting over potential capital outflows and growing competitive pressure on Europe’s telecommunications sector.

The record-breaking IPO, scheduled for June 12, is expected to raise $75 billion and value the company at $1.75 trillion.

Unlike most previous US listings, the offering has been structured to give German and European retail investors particularly attractive access, raising concerns about a potential drain of capital from Europe.

At the same time, SpaceX subsidiary Starlink is emerging as a potential threat to the traditional terrestrial mobile communications market due to its low-latency satellite network.

That development could affect companies such as Deutsche Telekom and its subsidiary T-Mobile.

Fears of an “inflated valuation”

The financial data underpinning the record valuation, however, provide numerous reasons for skepticism.

Of SpaceX’s three current business segments — its rocket division, the Starlink satellite business and artificial intelligence company xAI, which also includes social media platform X — only the satellite business is profitable.

While SpaceX’s revenues are rising, so are its losses. In 2025, the company generated approximately $18.7 billion in revenue, up by one-third from the previous year, but also recorded losses approaching $5 billion.

In the first quarter of 2026 alone, the company posted roughly $4.7 billion in revenue while losses reached approximately $4.3 billion.

xAI created a significant drag on results, recording an operating loss of $2.47 billion.

As a result, a Danish pension fund blacklisted SpaceX, arguing that the company’s valuation was “generously inflated” and that pricing was being driven more by “Musk’s narratives than economic realities.”

SpaceX is tying much of its growth outlook to artificial intelligence, and its revenue projections depend heavily on technologies that have yet to be developed, including solar-powered data centres in space.

According to Reuters, the company is targeting a potential $28.5 trillion market in artificial intelligence.

Berenberg warns of capital flowing to the US

In a departure from the norm for US public offerings, participation by retail investors from Germany and across Europe has been made easier.

Berlin-based fintech company Trade Republic announced that European customers would be able to subscribe directly to SpaceX shares through its app.

That development threatens to create challenges for the European economy. Holger Schmieding, chief economist at Berenberg Bank, warned that capital is increasingly being drawn toward the United States.

“These enormous IPOs absorb capital through valuations heavily influenced by speculation. That makes it more difficult to finance investments in Europe,” Schmieding said.

At the same time, investors from China, including Hong Kong, have reportedly been barred from participating in the IPO for security-related reasons.

Because the United States applies regulatory and compliance restrictions to the export of critical technologies, lead underwriters were instructed not to accept orders from Chinese investors.

Starlink puts pressure on German telecom giants

Meanwhile, SpaceX’s recent global expansion, particularly in Europe, is creating uncertainty within the traditional communications industry, especially at Deutsche Telekom.

Satellite communications existed long before SpaceX and Starlink, but they faced a fundamental limitation: satellites typically orbited Earth at altitudes of around 35,000 kilometres.

At those distances, signals took relatively long to return to Earth. Latency could reach half a second or more, making video streaming and seamless internet browsing impractical.

Starlink fundamentally changed that model by deploying more than 10,000 satellites into low Earth orbit at altitudes of between 340 and 550 kilometres, reducing signal transmission times to around 20 milliseconds.

By comparison, modern 5G networks in Germany operated by Deutsche Telekom, Vodafone and Telefónica typically achieve latency of between 15 and 25 milliseconds.

Starlink has also received approval from the US Federal Communications Commission (FCC) to deploy an additional 15,000 satellites.

That has led many observers to believe SpaceX ultimately intends to become a mobile network operator itself and displace established providers.

German telecom companies see cooperation as the only option

Deutsche Telekom Chief Executive Timotheus Höttges said he views the development as a challenge for his company.

“I can certainly confirm that Starlink is a first-class technology company. If you cannot fight the dragon, ride the dragon,” he said.

Höttges intends to continue Telekom’s existing cooperation with Starlink as a network operator. The partnership is one of 35 Starlink collaborations currently spanning six continents.

The Deutsche Telekom chief executive hopes Starlink will never be able to replace terrestrial networks. However, market figures suggest SpaceX may ultimately be capable of much more than its leading European rival.

SpaceX is valued at $1.75 trillion, compared with an estimated $150 billion valuation for Deutsche Telekom and $209 billion for T-Mobile.

T-Mobile shares have already fallen by around 10%, with the stock declining from approximately $210 per share a year ago to around $190 today.

Starlink has meanwhile already submitted a bid for mobile spectrum in the United States. If the company secures a lasting position in the sector, T-Mobile’s growth prospects in the US could come under pressure.

That would directly increase risks for Deutsche Telekom, which derives roughly three-quarters of its market value from US operations.

Momentum builds behind a German Starlink rival

Efforts to establish a European competitor to Starlink are gathering pace.

As SpaceX prepares for its IPO, Germany’s Federal Cartel Office approved a planned satellite joint venture between defence and technology companies Rheinmetall and OHB.

The two companies intend to bid for a multibillion-euro Bundeswehr contract to build a military communications satellite network comparable to Starlink.

OHB will be responsible for satellite manufacturing and ground station deployment, while Rheinmetall will build the networks and produce end-user devices.

The Franco-German Airbus Group, which had initially competed against the Rheinmetall-OHB venture, will also be included in the project.

Although the new three-way alliance effectively removes competition and creates a monopoly structure, it allows the Bundeswehr project to move forward quickly and helps avoid potential legal disputes that could arise if the contract were awarded to a single bidder.

Musk says orbital data centres are not a difficult challenge

As SpaceX prepared for its major IPO this week, Chief Executive Elon Musk said on Monday that building artificial intelligence data centres in orbit was not a particularly difficult engineering challenge.

The billionaire entrepreneur said much of the required technology already exists within the current Starlink network.

“One of the things we want to convey here is that there is no kind of magic required that does not actually exist,” Musk said in a video interview released by the company.

“Most of this consists of technologies we have already developed for Starlink V3 satellites. We do not think this is a very difficult problem compared with what we are already doing.”

The remarks came as investors scrutinised SpaceX’s plans for orbital AI data centres.

Those plans form a key component of the company’s long-term growth strategy ahead of an IPO expected to value the company at approximately $1.75 trillion.

Plans unveiled for AI satellites

Musk and SpaceX engineer Ian Dahl outlined plans for solar-powered AI satellites designed to function as computing nodes in orbit and cooled through the dissipation of heat into space.

The company argues that moving computing infrastructure into orbit could help overcome some of the power constraints increasingly faced by terrestrial AI data centres.

According to the presentation, the first proposed AI satellite would generate roughly 150 kilowatts of peak power and provide 120 kilowatts of continuous computing capacity.

Musk said that was broadly comparable to a single Nvidia GB300 AI server rack, which typically consumes around 140 kilowatts at peak load.

SpaceX said the satellites would rely heavily on technologies already being introduced with next-generation Starlink V3 satellites, including solar panels and thermal management systems.

Musk said he expects SpaceX’s AI satellite factory in Bastrop, Texas, to achieve meaningful production volumes by the end of next year.

The orbital computing initiative forms part of a broader strategy aimed at positioning SpaceX not only as a launch and satellite communications company, but also as a major provider of artificial intelligence infrastructure as it enters the public markets.

Turkish Foreign Minister Hakan Fidan has emphasized the normalization process with Armenia while calling for the signing of a peace agreement between Yerevan and Azerbaijan.

The evaluations were made by Fidan during a joint press conference following the 10th Türkiye-Azerbaijan-Georgia Tripartite Foreign Ministers’ Meeting held in Istanbul. Highlighting tripartite cooperation, Fidan emphasized the importance of peace and stability in the South Caucasus. He called for a peace treaty between Azerbaijan and Armenia, while also pointing to the significance of the ongoing normalization process between Türkiye and Armenia.

Hosted by Foreign Minister Fidan, the tripartite meeting was attended by Azerbaijani Foreign Minister Jeyhun Bayramov and Georgian Deputy Prime Minister and Foreign Minister Maka Botchorishvili. Following the meeting, which lasted approximately one hour, the ministers held a joint press conference. Fidan, Botchorishvili, and Bayramov subsequently signed the Istanbul Declaration.

The backbone of Middle Corridor cooperation

During the joint press conference, Fidan emphasized the critical importance of cooperation in the South Caucasus. He stated that the tripartite mechanism between Türkiye, Azerbaijan, and Georgia serves as a guarantee of peace and stability in the region, adding: “The Middle Corridor has become one of the strategic backbones of our tripartite cooperation.”

Pointing out that the world is currently passing through a period of geopolitical fractures in various regions, Fidan said: “Today, as three countries, we have reaffirmed our common will regarding the future of our region, our mutual trust, and the joint vision we have built together. The stronger the cooperation between our countries becomes, the more secure, prosperous, and stable the South Caucasus will be.”

He stated that this cooperation paves the way for peace, stability, and energy supply security through connectivity across a broad geography stretching from Europe to Asia.

In this context, Fidan pointed to the significance of the Middle Corridor:

“Our goal from now on is to build a region that is even more integrated in terms of energy, transport, and communication infrastructure. This integration is also of strategic importance for establishing a more secure, faster, and more predictable transit route between Europe and Asia. The most concrete point this objective has reached today is the strengthening role of the Middle Corridor. The Middle Corridor has become one of the strategic backbones of our tripartite cooperation. In this framework, the ceremony held on the Georgian section of the Baku-Tbilisi-Kars railway line on June 2, marking the line reaching its full capacity, was an important milestone. We aim to provide more added value to our region by utilizing this strategic line to the maximum extent.”

Call for a peace agreement between Azerbaijan and Armenia

Addressing the framework of security and stability in the South Caucasus, Fidan called for a peace treaty between Azerbaijan and Armenia.

“We support the peace process between Azerbaijan and Armenia. We demand that Azerbaijan’s legitimate concerns be addressed and that the peace agreement be signed,” Fidan said.

Emphasis on normalization with Armenia

Fidan pointed out that the normalization process Türkiye is conducting with Armenia continues, stating that “as connectivity strengthens, the social foundation of peace will also strengthen.”

Fidan described the process as follows: “The normalization process we are carrying out with Armenia continues in the same manner, in close coordination with Azerbaijan. Significant progress has also been made over the past four years. In our view, the primary opportunity and goal facing the South Caucasus is this: as the ground for peace strengthens, connectivity projects will yield even stronger results, and as connectivity strengthens, the social and economic foundations of peace will be established on firmer ground. We are determinedly continuing our efforts to reinforce this cycle, which will serve the common interest of the entire region.”

Call for diplomacy in Iran and Ukraine conflicts

Fidan also shared evaluations regarding the conflict involving Iran, stating:

“Despite this positive outlook toward establishing peace in the South Caucasus, the security environment surrounding us continues to harbor serious risks. In this context, the peace talks conducted between Iran and the US were also on our agenda at today’s meeting. It is essential to leave behind this war, which has brought our region and the world to the brink of disaster. Within this framework, we are continuing our contacts with both the US and Iran to ensure a lasting peace, while also working in close consultation with regional countries. Türkiye will continue to support diplomacy and dialogue during this critical period.”

Pointing out that the ongoing Russia-Ukraine war also threatens regional security, Fidan continued:

“We view reaching peace in the Russia-Ukraine War as essential for the stability and security of our region. We believe that the diplomatic process and peace-oriented efforts must be maintained with determination. We are all watching the current stalemate on the battlefield and in the diplomatic process with concern. Unfortunately, the steps taken by the parties to turn this stalemate to their advantage are further increasing tensions on the ground. Recent attacks in the Black Sea and the Azov Sea are bitter examples demonstrating how serious the consequences of this danger can be.”