Hormuz closure chokes oil flows: Saudi giant Aramco begins cutting output at two oilfields

Saudi oil giant Aramco has begun cutting output at two of its oilfields after tanker traffic through the Strait of Hormuz was disrupted by the Iran war, Reuters reported on Monday, citing two sources.

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The curbs reflect the growing impact of the conflict on the global energy system, as Gulf producers struggle to move crude exports through one of the world’s most critical oil shipping lanes. It was, however, not immediately clear which oilfields were affected or by how much production had been reduced, the report said. 

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The company has begun rerouting some crude cargoes to the Red Sea port of Yanbu, the report said, as producers across the Gulf face difficulties exporting oil through the Strait of Hormuz.

Attacks near key Saudi energy sites

The production adjustments follow a series of attacks targeting energy infrastructure across West Asia.

Last week, Saudi Arabia said an attempted drone strike targeted the Ras Tanura complex, which houses the kingdom's largest domestic refinery and a major crude export terminal. 

The attempted strike came two days after a separate drone attack on the complex forced the refinery to shut temporarily.

Hormuz disruption hits Gulf oil exports

Saudi Arabia and other Gulf oil producers have struggled to move shipments since the war began on February 28 with U.S.-Israeli strikes on Iran.

The Strait of Hormuz, bordered by Iran to the north, is the main export route for oil and gas shipments from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, and the United Arab Emirates.

About 15 million barrels of crude oil - roughly 20 percent of global supply - typically pass through the narrow waterway each day, according to independent research firm Rystad Energy.

The threat of Iranian missile and drone attacks has largely halted tanker traffic through the strait.

As storage tanks fill due to limited export capacity, Iraq, Kuwait, and the UAE have also reduced production.

Energy infrastructure across the region has come under repeated attack since the conflict began, with strikes targeting oil and gas facilities in Iran, Israel, and several Gulf states.