Gulf oil storage filling as exports slow amid Strait of Hormuz tensions

RIYADH, March 6, 2026 (Saudi Arabia Breaking News) — Oil storage facilities across the Gulf region are filling up as crude exports slow sharply amid rising security risks around the Strait of Hormuz, energy analysts said.

Few tankers are currently risking transit through the strategic waterway, which is bordered by Iran, due to concerns over potential attacks by drones or rockets.

As storage capacity approaches its limits, analysts warn that oil producers in the region may soon be forced to curb output.

Rystad Energy said in a note on Thursday that Saudi Arabia could face output cuts within a week if the situation persists. The Gulf region also includes Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates.

The research and analysis firm said that if the conflict continues, global oil prices could rise significantly. Brent crude, the international benchmark, is currently nearing $88 per barrel.

“With storage buffers measured in days rather than months, the question for most Gulf producers is not whether production will be curtailed, but when,” Rystad Energy said.

Aditya Saraswat, a senior analyst at the firm, said precautionary shutdowns across the region could have serious implications for global oil markets.

Natasha Kaneva, head of global commodities strategy at J.P. Morgan, also said production cuts could increase quickly, estimating that each reduction of one million barrels per day could push benchmark oil prices up by about $4.

According to Iraqi oil officials cited earlier this week, Iraq has already reduced production by nearly 1.5 million barrels per day due to storage constraints and export disruptions linked to the conflict. The cuts could widen to more than 3 million barrels per day in the coming days.