Saudi oil output plunges to lowest since 1990 amid fallout from US-Iran war
“Saudi Arabia's crude oil production plunged to 6.24 million barrels per day in August, marking its lowest reported level since 1990, as the prolonged US-Iran war continued to disrupt energy flows acro…”
The kingdom reported directly to the Organisation of the Petroleum Exporting Countries (OPEC) that its production fell by around 1.9 million barrels per day from 8.1 million barrels per day in July, 's report on Friday. Saudi production had stood at 7.1 million barrels per day in June before recovering sharply in July, but the rebound was reversed in August.
The decline came despite plans by Saudi Arabia and other members of the wider OPEC+ producer group to increase output during the month. The fall in Saudi output highlights the growing impact of the US-Iran war beyond the immediate conflict zone, with disruptions affecting both the Persian Gulf and alternative export routes through the Red Sea.
Saudi Arabia reports to OPEC that its crude oil production plunged again last month, hitting the lowest since 1990https://t.co/IrG0gHHti3— Bloomberg (@business)September 10, 2026Saudi Arabia relied heavily on its western export infrastructure, particularly the Red Sea port of Yanbu, as instability around the Strait of Hormuz complicated traditional Gulf shipping routes.
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That alternative corridor, however, came under growing pressure after Yemen's Houthi group declared a maritime embargo against Saudi Arabia on July 20, describing the move as a new front in the conflict involving Iran and the US.The group subsequently claimed attacks on Saudi-linked vessels and energy facilities, including infrastructure around Yanbu and the Jazan refinery, prompting tankers to switch off their Automatic Identification System (AIS) signals to reduce exposure to attacks.
Ship-tracking data showed a sharp deterioration in Red Sea flows during August. Saudi crude and condensate loadings from Yanbu fell to a six-month low,. Also Read:Explainer: Why is the Bab el-Mandeb Strait so important?
Vortexa estimated August loadings at 3.2 million barrels per day, while Kpler put them at just 1.5 million barrels per day.
The conflict has also put pressure on shipping through the Strait of Hormuz, the main outlet for Gulf energy exports; vessel transits through the waterway fell to just seven on Wednesday, compared with a 10-day average of 14, -tracking data.
Saudi Arabia nevertheless supplied 7.1 million barrels per day to the market in August, OPEC, significantly above its reported production of 6.24 million barrels per day.
The broader disruption has tightened global crude supplies and added pressure to oil prices; Brent crude climbed above $100 per barrel this week as renewed fighting between the US and Iran and attacks on shipping heightened concerns over Middle Eastern supply.
Written by Sheheryar Munawar
Aman-e-Pakistan Senior Journalist & Bureau Reporter
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