The major oil-producing countries in the Middle East are facing the most severe supply crisis since the outbreak of regional conflicts, with the collective production cut from the four countries equivalent to about 6% of global supply.
According to Bloomberg citing informed sources, Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait have reduced their total daily production by up to 6.7 million barrels, a reduction of about one-third of the total production capacity of the four countries.
The Strait of Hormuz, a key global energy passage, is currently nearly paralyzed, leading to accelerated filling of storage tanks and forced production cuts. As a result, oil prices briefly approached $120 per barrel, but later retreated after U.S. President Trump hinted that the conflict might soon end.
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Amin Nasser, CEO of Saudi Aramco, warned during an earnings conference call that the disruption in the Strait of Hormuz is triggering a chain reaction, affecting multiple industries including shipping, insurance, aviation, agriculture, and automotive. If the situation continues to deteriorate, it will have &#34;catastrophic consequences&#34; for the global oil market and the world economy.
<h2>Details of the Four Countries' Production Cuts: Iraq's Reduction Reaches 60%</h2>
According to informed sources obtained by Bloomberg, the distribution of this round of production cuts is as follows: Saudi Arabia's daily production decreased by 2 to 2.5 million barrels, Iraq by about 2.9 million barrels, the UAE by 500,000 to 800,000 barrels, and Kuwait by about 500,000 barrels.
In terms of the percentage of reduction, Iraq has been hit the hardest, with a production cut of nearly 60%. In contrast, the reductions from Saudi Arabia, the UAE, and Kuwait are approximately 20% to 25% of their respective production levels in February of this year.
<h2>Strait of Hormuz Nearly at a Standstill, Export Channels Blocked</h2>
This conflict has entered its second week, involving more than a dozen countries. The Strait of Hormuz is the most important oil transportation chokepoint in the world, and if it is blocked for an extended period, it will directly cut off the main channel for Middle Eastern crude oil to enter the international market.
Nasser explicitly called for the restoration of shipping order in the Strait of Hormuz during the meeting, pointing out that most of the global spare production capacity is concentrated in this region, and &#34;restoring shipping in the Strait of Hormuz is crucial.&#34;
He also warned that global inventories are at a near five-year low, and if supply disruptions continue, the rate of inventory consumption will accelerate further.
<h2>Oil Prices Fluctuate Dramatically, Market Focuses on Conflict Direction</h2>
This round of production cuts is the most concrete supply-side response since the outbreak of the conflict, leading to significant fluctuations in oil prices. On Monday, international oil prices briefly climbed to $120 per barrel, but after Trump's remarks about the conflict possibly ending soon, the gains were quickly reversed.
Nasser characterized this crisis as &#34;the biggest crisis the oil and gas industry in the region has faced to date,&#34; a statement that is clearly stronger than previous geopolitical conflicts.
He also emphasized that the disruption's impact on shipping and insurance has created a serious domino effect, extending into multiple sectors of the real economy. The current core focus of the market is on the duration of the conflict and whether the Strait of Hormuz can quickly return to normal passage

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Saudi Arabia's daily production decreased by 2 million to 2.5 million barrels, Iraq reduced by about 2.9 million barrels, the UAE decreased by 500,000 to 800,000 barrels, and Kuwait reduced by about 500,000 barrels. The four countries have collectively cut daily production by up to 6.7 million barrels, accounting for about one-third of their total capacity, equivalent to approximately 6% of global supply

- The Middle East oil-producing nations are facing the most severe supply crisis since the outbreak of regional conflicts, with a collective production cut of around 6% of global supply.  
- Saudi Arabia, Iraq, the UAE, and Kuwait have reduced their daily output by up to 6.7 million barrels, significantly impacting markets, with oil prices nearing $120 per barrel.  
- CEO Amin Nasser warned of catastrophic consequences for global oil markets and the economy if the situation persists, emphasizing the critical need to restore shipping operations through the Strait of Hormuz.

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Middle East "Production Cut Wave" Expands: Four Countries Reduce Oil Production by 6.7 Million Barrels per Day! Iraq's Daily Production Plummets by 2.9 Million Barrels