image sourced from original article at The ongoing Middle East conflict has triggered a major energy supply shock after Iran effectively shut the Strait of Hormuz following airstrikes by the United States and Israel. Although limited transit later resumed for vessels without United States or Israeli links, the disruption sent global oil prices soaring, with Brent crude rising sixty percent in March. The International Energy Agency described the turmoil as the world's largest energy supply shock to date, citing millions of barrels per day in shut-ins and damage to energy facilities.
The impact across Gulf producers has been uneven. Saudi Arabia managed to offset a sharp drop in export volumes with higher prices, lifting revenues to 13.5 billion dollars. Its ability to reroute crude through the East-West pipeline to the Red Sea helped cushion losses. Iran and Oman also recorded revenue gains despite lower or steady export volumes, benefiting from the price surge.
Others fared far worse. Kuwait, Qatar and Iraq suffered steep declines in both exports and revenues due to heavy reliance on the Strait and limited alternative routes. Iraq experienced one of the sharpest hits, with revenues plunging by more than three quarters year on year. The United Arab Emirates saw exports fall as well, though pipeline infrastructure provided partial relief despite attacks on loading facilities.
