Saudi Arabia's oil output falls sharply after new Iranian attack

According to SPA, several key energy facilities in Saudi Arabia were attacked despite a ceasefire agreement between the United States and Iran. The strikes targeted oil production, transportation, and refining assets across Riyadh, the Eastern Province, and the Yanbu industrial city.

Saudi attacks hit crude exports and refining

A pumping station on the East-West pipeline—used to carry crude from processing facilities near the Persian Gulf to the Yanbu export port on the Red Sea—was among the targets. The attack reduced flow on the line by about 700,000 barrels per day. Over nearly six weeks of conflict, Saudi Arabia relied on this 7 million barrels per day pipeline as its main crude export route.

Riyadh is currently unable to export via the Hormuz Strait due to Iranian attacks. The Manifa oil facility was attacked, cutting production by about 300,000 barrels per day, and Khurais had previously been attacked, reducing another 300,000 barrels per day. In total, Saudi Arabia’s production capacity has fallen by about 600,000 barrels per day.

Attacks also targeted major refineries, including the SATORP joint venture in Jubail, the Ras Tanura refinery, SAMREF in Yanbu, and the Riyadh refinery. SPA said the strikes directly affect exports of refined products to global markets.

Processing facilities at Ju’aymah were also hit by fires, affecting exports of LPG and natural gas liquids.

Ceasefire agreement, but Hormuz remains constrained

Analysts said damage to Saudi energy infrastructure is intensifying global oil-supply disruptions in a market already unsettled by Iran’s attacks on oil ships through the Hormuz Strait.

On Tuesday (Apr 7), the United States agreed to a two-week ceasefire in exchange for Iran permitting ships to pass through Hormuz. However, by Thursday (Apr 9), Sultan Ahmed Al Jaber, CEO of ADNOC, said the route had not returned to normal.

Iran stated that any ship wishing to pass Hormuz must be approved by Tehran, indicating the chokepoint has not truly reopened and that traffic remains constrained under Iranian control.

Hormuz is a pivotal chokepoint linking Gulf exporters to global markets. Before the U.S. and Israel launched airstrikes on Iran on Feb 28, around 20% of global oil traded through this chokepoint.

Production halts and additional regional strikes

In an interview with CNBC, Matt Smith, an oil analyst at Kpler, said disruption at Hormuz forced Gulf oil producers to halt production by about 13 million barrels per day.

Reuters previously cited Iran’s attack on the East-West pipeline shortly after the two-week ceasefire was reached, with sources indicating other energy facilities in Saudi Arabia were targeted.

In a statement on Apr 8, Iran’s IRGC said it fired missiles and drones at targets across the Gulf, including oil facilities in Yanbu that it claimed were owned by American companies.

Other Gulf states report continued attacks

Beyond Saudi Arabia, several Gulf energy facilities remained under attack following the ceasefire announcement. Kuwait’s army said a wave of attacks since 8:00 local time targeted oil facilities, power plants, and desalination plants. The UAE also reported ongoing attacks, while Bahrain said Iran’s assault damaged homes in the Sitra area.