Saudi Arabia’s Aramco has begun reducing production at two of its oilfields, sources said Monday, as disruptions in the Strait of Hormuz escalate due to the US -Israeli conflict with Iran. The company did not specify which fields or the scale of the cuts.
The move highlights the growing logistical challenges facing the world’s top oil exporter since February 28, when US and Israeli strikes on Iran prompted Tehran to retaliate with hundreds of missile and drone attacks, including strikes on Gulf states hosting US military bases.
The crisis has pushed several neighboring producers to scale back output and declare force majeure: Kuwait Petroleum Corporation cut oil production, QatarEnergy halted LNG operations, southern Iraqi oilfields reduced output by up to 70%, and the UAE’s ADNOC is actively managing offshore production while maintaining onshore operations.
Shipping through the chokepoint, which carries roughly 20% of global oil and LNG flows, has slowed almost to a standstill, intensifying the impact on global energy supplies.
Aramco’s annual financial results showed a decline in adjusted net income, which fell to $104.65 billion in 2025 from $110.3 billion in 2024. while it achieved a slight increase in cash flow from operations to $136.2 billion in 2025, up from $135.7 billion.
