Aramco says US-Iran war cost global market 2.6 billion barrels of oil
This digest was compiled by AI from multiple sources — links to the originals are below.
Saudi Aramco said on Monday that the ongoing war between the United States and Iran has erased 2.6 billion barrels of oil from global supply since hostilities began. The loss, equivalent to roughly three months of global consumption, has tightened energy markets sharply. Brent crude prices hovered near $120 a barrel following the statement.
The Announcement
Saudi Aramco's assessment, released during a briefing in Dhahran, marks the first time a major producer has quantified the supply disruption caused by the 18-month conflict. The 2.6 billion barrel figure includes production losses from damaged Iranian and Iraqi fields, tanker seizures in the Strait of Hormuz, and refinery strikes. Aramco CEO Amin Nasser called on the international community to bolster energy security measures, noting that spare production capacity globally has fallen to 2% of demand, the lowest since 2007.
Market Reaction
Oil prices jumped 3.2% in London trading, with Brent crude settling at $118.90 per barrel. The surge erased earlier declines driven by hopes of a ceasefire deal. Traders pointed to the Aramco data as confirmation that physical supply was tighter than official statistics indicated. The International Energy Agency in Paris had previously estimated supply losses at 1.8 billion barrels. U.S. Strategic Petroleum Reserve releases have slowed to 200,000 barrels per day, half the rate from earlier this year.
What's Next
Aramco executives are scheduled to meet with OPEC+ counterparts in Vienna on August 11 to discuss further production adjustments. It remains unclear whether members can agree on new quotas given the unpredictability of the Strait of Hormuz transit corridor.
2 sources
Aramco says US-Iran war cost global market 2.6 billion barrels of oil
