Major Gulf oil producers—Saudi Arabia, Iraq, the UAE, and Kuwait—have slashed collective oil output by approximately 6.7 million barrels per day (bpd), representing nearly one-third of their production. This significant reduction, reported on March 10, 2026, stems from severe shipping disruptions at the Strait of Hormuz due to regional conflict, causing global oil prices to surge.
The escalating crisis in the Middle East has pushed the vital Strait of Hormuz close to potential closure, threatening global oil supplies and forcing several Gulf producers to scale back output, according to Bloomberg.
With crude storage facilities filling rapidly, analysts warn that a complete shutdown of production could become a real risk if output is not carefully managed.
The disruption comes amid the intensifying Iran–Israel conflict, which has heightened fears of supply interruptions across the Gulf region.
Given that a significant share of the world’s oil passes through the Strait of Hormuz, any prolonged disruption could have serious consequences for global energy markets and fuel prices.
