New york: The US war on Iran is disrupting oil production and shipping routes across the Middle East, tightening global crude supplies and pushing energy prices higher as the conflict increasingly affects major production and export corridors.According to TRTworld.com, Saudi Arabia's crude oil production plunged to 6.24 million barrels per day in August, marking its lowest reported level since 1990. This significant drop, reported directly to OPEC by the kingdom, represents a reduction of approximately 1.9 million barrels per day from July's figures, reversing an earlier recovery.The conflict's impact has extended beyond the immediate zone, affecting both the Gulf and alternative export routes through the Red Sea. Saudi Arabia has increasingly relied on its western export infrastructure, particularly the Red Sea port of Yanbu, due to instability around the Strait of Hormuz complicating traditional Gulf shipping routes. However, this alternative corridor has also come under pressure after Yemen's Houthi g roup declared a maritime embargo against Saudi Arabia on July 20. The group claimed attacks on Saudi-linked vessels and energy facilities, affecting infrastructure around Yanbu and the Jazan refinery. In response, tankers have been switching off their Automatic Identification System signals to reduce exposure to attacks.Ship-tracking data showed a sharp deterioration in Red Sea flows during August, with Saudi crude and condensate loadings from Yanbu falling to a six-month low. Vortexa estimated August loadings at 3.2 million barrels per day, while Kpler put them at 1.5 million barrels per day. Shipping through the Strait of Hormuz has also been affected, with vessel transits through the waterway dropping to seven on Wednesday, compared with a 10-day average of 14.Despite the fall in production, Saudi Arabia supplied 7.1 million barrels per day to the market in August, significantly above its reported production level. The ongoing disruption has contributed to tighter global crude supplies and higher oil p rices. Brent crude climbed above $100 per barrel this week as renewed fighting between the United States and Iran and attacks on shipping heightened concerns over Middle Eastern energy supplies.By Friday, Brent futures stood at $106 per barrel, while West Texas Intermediate traded at $101. Crude oil prices had risen by around 10 percent on a weekly basis. In a sign of the impact on consumers, diesel prices in the United States exceeded $6 per gallon for the first time, reaching $6.05 on Friday, according to American Automobile Association data. The energy shock has also impacted financial markets, with Asian shares declining on Friday, tracking Wall Street losses, while oil prices continued to rise.Higher energy prices have also added to inflationary pressures. US producer prices rose 5.4 percent year-on-year in August, accelerating from 4.8 percent in July. US Treasury yields have remained above pre-war levels amid concerns over energy prices, inflation, and rising government debt. Diplomatic efforts are expected to focus on keeping energy shipping routes open, with Iran and Gulf states planning to meet on Monday in Oman to discuss a temporary arrangement for managing shipping through the Strait of Hormuz.Meanwhile, Yemen's western coast has seen rapid military developments, with reports of Houthi advances on several fronts towards areas near Mocha and the Bab al Mandeb Strait. With disruptions affecting production, the Red Sea, and the Strait of Hormuz, the US-Iran war is increasingly placing pressure on the global oil sector, with continued fighting and shipping risks keeping crude prices elevated.
- September 14, 2026
