Saudi Arabia reports significant oil output cuts following Iranian strikes

• Saudi Arabia says attacks on energy infrastructure have reduced oil output and exports amid rising global supply concerns.

Saudi Arabia’s Ministry of Energy confirmed on Thursday that a series of targeted attacks on its core energy infrastructure has significantly hampered the Kingdom’s oil production and export capacity.

The disclosure comes amid an intensifying regional conflict that has already sent global energy markets into a tailspin.

Production and Pipeline Hits

According to the state-run news agency SPA, the attacks have resulted in a production capacity cut of approximately 600,000 barrels per day (bpd). More critically, the East-West Pipeline, the Kingdom’s primary alternative to the now-blocked Strait of Hormuz, saw its throughput slashed by 700,000 bpd following a strike on a key pumping station.

Specific facilities confirmed to have sustained damage include:

• The East-West Pipeline: Vital for transporting crude from eastern fields to Red Sea ports.
• Manifa Oil Field: Capacity reduced by 300,000 bpd.
• Khurais Field: Capacity reduced by 300,000 bpd following an earlier strike in March.
• Refineries: Impact reported at the Ras Tanura, Satorp, Samref, and Riyadh facilities.

A Growing Energy Crisis

The timing of these strikes is particularly sensitive. With Iran maintaining a near-total blockade of the Strait of Hormu, a chokepoint for 20% of the world's oil, Saudi Arabia had relied on the East-West Pipeline to reach its full 7 million bpd capacity to keep global markets supplied.

"Any pullback on volume is going to add to an already tight situation," noted Matt Smith, an analyst at Kpler. "It is not great news for markets." Following the announcement, Brent crude futures rose to nearly $96 a barrel, reflecting investor fears of a sustained supply crunch.

Human and Economic Toll

The Saudi Ministry of Energy reported that the strikes were not without a human cost. One Aramco security staff member was killed, and seven other employees were injured during the recent wave of attacks.

While a U.S.-brokered two-week ceasefire was announced on April 10, 2026, the situation remains volatile. Industry experts warn that if these "asymmetric" strikes on infrastructure continue, the global economy could face a supply disruption rivaling the energy crises of the 1970s.

Global Impact Note: Beyond oil, the regional instability has disrupted the global fertilizer trade. With over 30% of global urea exported through the Gulf, experts at the Food Policy Institute warn of looming spikes in food prices for corn and wheat.