Ongoing conflict involving Iran disrupts shipments through the vital Strait of Hormuz, pressuring regional producers such as Iraq, Saudi Arabia, and the United Arab Emirates to curb output.
Middle Eastern oil producers are approaching storage capacity as the continuing Iran-related conflict blocks the Strait of Hormuz, a key global oil transit route. Iraq has already reduced production, while Saudi Arabia and the United Arab Emirates may follow in the coming weeks. The blockage has intensified supply constraints and heightened volatility in oil futures markets.