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Middle East Oil War Leaves Global Supply Chains in Shock

Financial Times Companies •
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Six weeks of fighting across the Middle East smashed the region’s energy arteries, striking Saudi oil fields, Qatar’s LNG hubs, and refineries in the UAE and Kuwait. Saudi Arabia reported a 600,000 b/d cut in output, while QatarEnergy said the Ras Laffan plant lost about 17 % of its exports and will need 3‑5 years to recover.

The attacks knocked 2.4 mn barrels‑a‑day of refining capacity offline, with key pipelines such as the Abqaiq‑Yanbu line hit after the ceasefire. Even if the Strait of Hormuz reopens, analysts warn that a durable pause will not restore normal prices for at least six months, as spare capacity shrinks for global supply chains and investors.

Saudi’s energy ministry confirmed hits on Manifa and Khurais, each losing roughly 300,000 b/d, while the UAE’s Ruwais refinery and Habshan gas plant suffered repeated fires. Kuwait’s Mina Al Ahmadi and Mina Abdullah refineries, crucial jet‑fuel suppliers to Europe, remained operational but damaged, tightening regional fuel logistics for airlines and refining margins.

With Iraq forced to shut down over three‑quarters of its output and Israel's strikes crippling Iranian gas fields, the conflict has already dented global supply chains. The lingering damage, coupled with a closed Strait, means the world will face higher energy costs and a tighter market until the infrastructure is restored for producers, shippers, and consumers worldwide.