Gulf Oil Output Falls 10mn bpd Amid Iran-U.S.-Israel Conflict
Gulf oil output fell 10M bpd amid Iran-U.S.-Israel hostilities, the IEA said. Iran struck vessels including the Thai Mayuree Naree, leaving 3 missing. Drone attacks hit Saudi, Kuwaiti, and Bahraini energy sites; oil prices exceed $100/bbl.
ERBIL (Kurdistan24) - Gulf oil producers have cut output by a combined 10 million barrels per day amid escalating hostilities in the Middle East, the International Energy Agency reported Thursday, marking what the agency described as the largest supply disruption in global oil market history.
The cuts reflect at least 8 million barrels per day in crude production and an additional 2 million barrels per day in petroleum products, including condensates. Iran’s tightening control of the Strait of Hormuz, a critical transit point for oil exports, has contributed to the sharp reduction in supplies, the IEA noted.
The reductions come as Iran launched a fresh wave of drone and missile attacks targeting energy infrastructure across the Gulf, further disrupting shipping routes and oil facilities.
Officials in Saudi Arabia said their air defenses intercepted multiple drones, including one approaching a diplomatic district in Riyadh and two others heading toward the Shaybah oil field near the UAE border, operated by Saudi Aramco, the kingdom’s state-owned energy company.
Kuwait also reported downing several drones amid Tehran’s ongoing campaign to target Gulf energy infrastructure, while Bahraini authorities urged residents to stay indoors after Iranian strikes hit fuel storage tanks in Muharraq Governorate, according to statements from respective interior and defense ministries.
Maritime traffic has been significantly affected.
The Thai-registered bulk carrier Mayuree Naree was struck by projectiles Wednesday while transiting the Strait of Hormuz, damaging its engine room and triggering a fire, according to the vessel’s owner, Precious Shipping.
The Omani navy rescued 20 of the 23 crew members, but three remain missing. “We still have not been able to get anyone to board our ship, even though the fire has been extinguished,” managing director Khalid Hashim told AFP, noting that access efforts were ongoing.
Thailand’s Ministry of Foreign Affairs confirmed all crew members were Thai nationals and said the government continues to search for the missing sailors. Iran’s Revolutionary Guards claimed responsibility for the attack, stating both the Mayuree Naree and a Liberia-flagged vessel were targeted for allegedly ignoring prior warnings.
Other incidents include attacks on commercial vessels near Iraq’s Basra Province, where two tankers were struck on Wednesday, resulting in one death and 20 rescues, the Iraqi Ministry of Oil said.
In Oman, drones struck fuel tanks at the port of Salalah, forcing temporary suspension of operations. The United Kingdom Maritime Trade Operations agency reported a container ship near the UAE was struck by an “unknown projectile,” causing a minor onboard fire without injuries.
The IEA’s warning coincides with oil prices climbing above $100 per barrel despite an unprecedented release of 400 million barrels from strategic reserves by member states, including 172 million barrels from the United States.
Analysts cited continued concerns over shipping disruptions in the Strait of Hormuz, through which roughly one-fifth of the world’s oil passes, as sustaining upward pressure on global energy markets.
U.S. President Donald Trump said Iran is “pretty much at the end of the line” but acknowledged the conflict may not end immediately, according to AFP.
American forces have struck 28 Iranian vessels alleged to be laying naval mines, while U.S. officials briefed lawmakers that the conflict has already cost the United States more than $11.3 billion, The New York Times reported.
Iran’s Islamic Revolutionary Guard Corps warned it could target economic centers and banks linked to U.S. and Israeli interests, with adviser Ali Fadavi telling Iranian state television that Washington and Tel Aviv should prepare for a “long-term war of attrition” that could damage the global economy.
The ongoing attacks and production cuts have disrupted oil and maritime operations across the Gulf, including Saudi Arabia, Oman, Kuwait, Bahrain, and the UAE, creating sustained supply uncertainty. Authorities and shipping operators continue to monitor the Strait of Hormuz closely as regional hostilities escalate.
The Gulf oil output cuts and Iranian strikes on energy and shipping targets have produced a sustained disruption in global oil markets.