Saudi oil output sinks to 1990 low amid US-Iran war fallout
14:05, 11/09/2026, FridayU: Update: 14:07, 11/09/2026, Friday
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Saudi Arabia reported crude production of 6.24 million barrels per day in August, marking its lowest level since 1990, as Houthi attacks on Red Sea shipping and the ongoing US-Iran war severely disrupted the kingdom's alternative export routes through the Yanbu terminal, according to OPEC data released on Friday.
Saudi crude output collapsed to 6.24 million barrels per day in August, marking the kingdom's lowest production level since 1990, as the US-Iran war and subsequent Houthi attacks on Red Sea shipping disrupted critical export infrastructure, according to OPEC data released Friday.
Production collapse
Saudi authorities told OPEC that output dropped by roughly 1.9 million barrels per day from July's 8.1 million, reversing a temporary recovery seen during the previous month. The decline persisted despite plans by Riyadh and other OPEC+ members to increase production, highlighting the severity of supply chain disruptions. Ship-tracking firms Kpler and Vortexa reported sharply reduced loadings at Yanbu, with estimates ranging between 1.5 and 3.2 million barrels per day.
Red Sea blockade
Yemen's Houthi movement announced a maritime embargo against Saudi Arabia on July 20, opening a new front in the wider conflict and threatening the Red Sea corridor that Riyadh had relied upon to bypass instability around the Strait of Hormuz. The group subsequently said it struck Saudi-linked vessels and energy facilities near Yanbu and the Jazan refinery, prompting tankers to disable Automatic Identification System signals to avoid detection. Maritime traffic through the Strait of Hormuz collapsed to merely seven transits on Wednesday, down from a 10-day average of 14 vessels, preliminary tracking figures indicated.
Market impact
The supply crunch has tightened global crude markets and propelled prices upward, with Brent crude climbing above $100 per barrel this week as renewed US-Iran hostilities intensified concerns over Middle Eastern supply stability. Saudi Arabia nevertheless supplied 7.1 million barrels per day to markets in August, significantly above its reported production level, suggesting substantial drawdowns from existing inventories. The production collapse marks the most severe disruption to Saudi output in over three decades, exceeding the impact of previous regional conflicts on the kingdom's petroleum sector.