Saudi Arabia's oil production dropped to 6.2mn barrels a day in August, the lowest monthly figure in 2026 and 23% lower than July, according to Opec. The decline follows a "maritime embargo" announced by Iran-backed Houthi rebels in Yemen at the end of July, which deterred ship operators and reduced export capacity. Crude exports fell to about 3.1mn b/d in August, down from 5.1mn b/d in July, marking the lowest level since at least 2013, per data from Kpler.

With limited storage capacity, Saudi Arabia was forced to cut output. The Houthi threats have disrupted the kingdom's main workaround for exporting oil without transiting the Strait of Hormuz. After the conflict erupted in late February, state-run Saudi Aramco began piping crude to the Red Sea port of Yanbu, helping restore production to roughly 80% of normal volumes.

As Opec's largest producer and the world's biggest oil exporter, Saudi output significantly impacts global markets. Analysts expect curtailed Red Sea exports to continue as Houthis escalate attacks on Saudi energy infrastructure, including multiple facilities struck on Tuesday. In response, Brent crude rose above $100 a barrel on Wednesday for the first time since July, trading around $102 on Thursday.