What to know about impact of US-Israel-Iran conflict on regional energy supply

The ongoing conflict between the United States, Israel, and Iran is creating increasingly widespread ripple effects across the Middle East.

As a key hub of global energy supplies, escalating tensions in the region are forcing major oil producers to cut production or halt exports, sending shockwaves through the global energy market. The following outlines how key oil producers in the region are being affected by the U.S.-Israel-Iran conflict.

Iran

As a direct participant in the conflict, Iran's oil production and transport have been severely disrupted since the outbreak of hostilities.

The National Iranian Oil Refining and Distribution Company has said that the country's energy infrastructure came under US-Israeli attacks since Saturday night, with several oil depots in Tehran and Alborz provinces struck by missiles and set on fire.

In a post on social media platform X on Sunday, Iran's Parliament Speaker Mohammad Bagher Ghalibaf warned that the continuation of the war could severely disrupt oil production and exports in the West Asia region.

Ghalibaf added that if the war continues, oil exports and production in the region could be severely affected, warning that not only US interests but also those of other countries could be harmed by what he called the "delusions" of Israeli Prime Minister Benjamin Netanyahu.

Despite Iran's denial of closing the Strait of Hormuz, a vital chokepoint through which roughly 20 percent of the world's oil shipments pass, recent attacks on multiple tankers in the strait have sharply curtailed shipping traffic, heightening concerns for the global energy market.

Saudi Arabia

Several oil-producing countries have also been affected by Iran's strikes on U.S. military bases in the region. Saudi Arabia's state oil giant Aramco shut down a refinery as a precautionary measure after it was hit by a drone on Monday.

On Saturday, Aramco announced that crude oil shipments are being temporarily redirected to Yanbu Port to enhance safety and the continuity of supplies for customers unable to access the Gulf, according to local Al Ekhbariya TV.

Kuwait

Kuwait's major national oil company the Kuwait Petroleum Corporation (KPC) announced Saturday a precautionary cut in crude oil production and refining.

Citing escalating regional tensions, the KPC said in a statement that the adjustment is "strictly precautionary" and that the company "remains fully prepared to restore production levels once conditions allow."

According to media reports, the company has declared force majeure due to threats against the passage of vessels through the Strait of Hormuz, continued attacks on Kuwait, and the "near-total" absence of available ships to transport crude oil and petroleum products from the Gulf.

Qatar

Qatar's state-run energy firm QatarEnergy has announced force majeure following attacks Wednesday on two of its main facilities during the ongoing conflict between Iran and the US-Israeli coalition.

Further to the announcement by QatarEnergy to stop production of liquefied natural gas (LNG) and associated products, QatarEnergy has declared Force Majeure to its affected buyers," the company said in a statement.

On Monday, Qatar halted LNG production after Iranian strikes prompted precautionary shutdowns. Qatar supplies roughly 20 percent of global LNG.

Qatari Energy Minister Saad Sherida Al-Kaabi has said that ongoing Mideast conflict could force Gulf exporters to halt production within days if the Strait of Hormuz is closed, driving oil to 150 US dollars per barrel within two to three weeks and severely damaging global economies.

The United Arab Emirates

The Abu Dhabi National Oil Company (ADNOC), an oil giant of the United Arab Emirates, announced on Saturday that it is "managing" offshore output levels to address storage requirements amid the regional conflict."

This approach preserves operational flexibility and will enable the company to resume normal operations without prolonged delay," ADNOC said in a statement.

Iraq

Iraq's oil production has dropped by nearly 60 percent due to the regional conflict, an Iraqi official said on Sunday.

Production currently stands at about 1.3 million barrels per day, down from around 3.3 million barrels before the outbreak of the conflict, Kazem Abdul Hassan Karim, an official from the Iraqi Oil Ministry, said in a statement.

On Friday, the ministry of natural resources of Iraq's semi-autonomous Kurdistan region said that a "terrorist attack" on an oil field in the region's Duhok province has led to the suspension of its production.

A ministry statement said the facility, operated by the U.S.-based HKN Energy Company in the Sarsang area, sustained damage during the attack.