Saudi Arabia’s oil output has slumped to its lowest level in more than three decades, as the widening US–Iran war chokes energy flows across the Middle East. In August, the kingdom produced just 6.24 million barrels of crude a day, down sharply from 8.1 million in July and the weakest monthly figure since 1990, according to data reported directly to OPEC.
The drop comes despite earlier plans by Riyadh and its OPEC+ partners to raise production. After a brief rebound in July, Saudi output reversed course in August, falling by about 1.9 million barrels a day as conflict-related disruptions spread beyond the battlefield, according to Anadolu Agency. With the Strait of Hormuz increasingly unstable, the kingdom leaned on its Red Sea export hub at Yanbu, only to face fresh threats there.
On July 20, Yemen’s Houthi movement declared a maritime embargo on Saudi Arabia, calling it a new front in the wider Iran–US confrontation. The group later claimed attacks on Saudi-linked tankers and energy sites, including facilities near Yanbu and the Jazan refinery, forcing some vessels to darken their tracking signals to avoid becoming targets.
Ship-tracking firms recorded a steep decline in Red Sea loadings. Vortexa estimated Yanbu’s August shipments at 3.2 million barrels a day, while Kpler put the figure as low as 1.5 million, both marking six-month lows. Traffic through Hormuz also slowed, with just seven transits recorded on a single day this week, half the recent average.
Even so, Saudi Arabia told OPEC it supplied 7.1 million barrels a day to global markets in August, drawing on stockpiles to cover the gap between production and exports. The strain on supplies has helped push Brent crude above $100 a barrel, as traders price in the risk of further escalation across the region’s vital shipping lanes.
