Saudi Aramco trims oil amid Hormuz crisis

Shafaq News- Riyadh

Saudi oil producer Aramco has begun cutting production at two oilfields after disruptions in the Strait of Hormuz linked to the US-Israel war on Iran, sources told Reuters on Monday.

The sources did not specify which fields were affected or how much output was reduced. Aramco has been rerouting some of its crude to the Red Sea port of Yanbu.

Other Gulf producers have also begun reducing supply as tanker access in the region tightens. Iraq’s oil output has dropped nearly 60% to about 1.7–1.8 million barrels per day from roughly 4.3 million before the conflict intensified, according to Bloomberg. With fewer tankers loading crude, storage facilities are filling quickly, forcing producers to cut production. The United Arab Emirates and Kuwait have also started trimming output.

The Strait of Hormuz, which carries roughly 20% of global oil exports, continues to face major disruptions as attacks linked to the regional conflict affect shipping. As a result, oil prices surged about 25% on Monday, nearing $120 per barrel, their highest level since mid-2022.