Saudi Arabia, Iraq and Kuwait led a remarkable recovery in Opec crude oil production last month, posting combined production gains of 2.54mn b/d. The rebound pushed the group’s output to within around 1.5mn b/d of pre-war levels. In a marked reversal from the early months of the Middle East conflict, Iran is now the member country suffering substantial production declines.
The conflict appears stuck in a “no war, no peace” stalemate, with the US trying to force Iran into submission through economic pressure, while Tehran shows no signs that it is ready to compromise. The risk of further escalation remains high, posing a threat that this recovery could be derailed, particularly as Iran’s allies in Yemen and Iraq continue to attack energy assets across the region. Nevertheless, by reversing most of their production losses, the Arab Gulf states have demonstrated their ability to adapt under fire. (CONTINUED - 1057 WORDS)
