Middle East Oil Exports Plummet Amid U.S.-Iran Conflict

Oil exports from the Middle Eastern Gulf, home to key players like Saudi Arabia, have significantly decreased by 60% in the week leading up to March 15. This decline is attributed to the ongoing U.S.-Iranian conflict, according to shipping data reviewed by Reuters.

The Strait of Hormuz, a crucial conduit for nearly 20% of global oil supply, faces effective closure. This has led to massive cancellations of shipments and production halts at oilfields, marking the most substantial supply disruption in history. Consequently, crude oil prices have soared to a four-year high.

Kpler reports that exports from eight Middle Eastern countries, including Saudi Arabia and Iran, averaged 9.71 million barrels per day, a stark 61% drop from February's 25.13 million bpd. Furthermore, Vortexa indicates an even sharper decline to 7.5 million bpd. With floating storage levels surging, output cuts may exacerbated, further straining the region's export capacity.