Saudi Oil Output Crashes to Decades-Low Amid US-Iran Conflict

Saudi Arabia's oil output has plummeted to its lowest level since 1990, according to reports from the Organization of the Petroleum Exporting Countries (OPEC). The country produced just 6.24 million barrels per day in August, a decline of around 1.9 million barrels per day from July.

The drop is attributed to the ongoing US war on Iran, which has disrupted energy flows across the Persian Gulf shipping route. The Strait of Hormuz has become a key arena in the conflict, and Tehran has asserted greater control over maritime activity in the area.

Saudi Arabia's alternative oil route through the Red Sea has also come under pressure, with Yemeni forces declaring a maritime embargo on July 20. This move has led to attacks on Saudi-linked vessels and energy facilities, prompting tankers to switch off their Automatic Identification System (AIS) signals.