West Asia Oil Exports Drops Over 60% As Strait Of Hormuz Closure Disrupts Global Supply

Last Updated:March 16, 2026, 23:48 IST

The closure has forced oil exporters to cancel shipments and shut down production at several oilfields, creating one of the biggest supply disruptions in history.

Daily oil exports from West Asia have fallen by more than 60% in the week to March 15, as the closure of the Strait of Hormuz amid the US‑Israel war in Iran has severely disrupted global supplies, according to a report by Reuters.

The Strait of Hormuz, a key waterway through which around a fifth of the world’s crude normally flows, has effectively halted activity since the conflict began.

The closure has forced oil exporters to cancel shipments and shut down production at several oilfields, creating one of the biggest supply disruptions in history. Crude prices have surged to over $100 per barrel, the highest in four years, while some fuel prices have hit record levels.

Exports from eight major West Asian producers – Saudi Arabia, Kuwait, Iran, Iraq, Oman, Qatar, Bahrain, and the United Arab Emirates – averaged 9.71 million barrels per day (bpd) last week, down 61% from 25.13 million bpd in February, according to data from Kpler cited by Reuters.

Data from Vortexa showed an even sharper drop to 7.5 million bpd, down 71% from February’s 26.1 million bpd.

Some of the oil has been placed in floating storage, with volumes rising from 10 million barrels before the war to over 50 million barrels this week, as exporters struggle to move cargo.

Production cuts have intensified, with the UAE halving output from 3.4 million bpd, Saudi Arabia cutting by 20%, and Iraq by around 70%, analysts estimate total West Asian output cuts at 7–10 million bpd.

The crisis has drawn international attention with US President Donald Trump urging NATO allies, including Britain, France, and Japan, to send warships to reopen the strait, warning that refusal would be “very bad for the future of NATO."

However, Western nations including the UK, Germany, Japan, and Australia have ruled out military intervention. Other European countries such as Poland, Spain, Greece, and Sweden have also distanced themselves from any involvement in the Strait of Hormuz following Trump’s call. Japan and Australia expressed similar positions, with Canberra confirming it will not send a navy ship to the strait.

(With inputs from Reuters)

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