Hormuz Closure Crashes Middle East Oil Exports by 60%
Oil exports from the Middle East have plummeted by at least 60% in the week to March 15 compared to February due to disruptions and output cuts amid the US-Iran conflict. The effective closure of the Strait of Hormuz has forced exporters to cancel shipments and shut production at oilfields, creating the world's biggest ever supply disruption.
Crude oil prices have surged to the highest in four years, while those of some fuels have reached record highs. Prior to the war, the eight Middle Eastern countries accounted for 36% of global seaborne oil exports, according to Kpler.
Total oil output cuts from Middle East producers have risen as the countries run out of storage and traffic through Hormuz remains a fraction of normal levels. Oil output in the United Arab Emirates is down by more than half, while Saudi Arabia has cut production by 20%, and Iraq by some 70%.