Attacks on Saudi energy sites have reduced the kingdom's oil production by about 600,000 barrels per day, state-run news agency SPA reported on Thursday, quoting an Energy Ministry official.
Last week's attack on the kingdom's East-West pipeline also led to a loss of about 700,000 bpd in the amount delivered, SPA reported.
While the Energy Ministry did not confirm who launched the attacks, the figures are the first confirmation of the effect strikes caused by the Iran war have had on the kingdom's energy output.
A ministry official said the kingdom has faced repeated attacks on oil and gas production, transport, refineries, petrochemical plants and the electricity sector in Riyadh, the Eastern Province and Yanbu Industrial City.
Attacks on its Manifa and Khurais sites each resulted in a loss of about 300,000 bpd of production capacity, SPA reported.
“The continuation of these attacks leads to reduced supply and slows recovery, thereby affecting the security of supply for consuming countries and contributing to increased volatility in oil markets,” the ministry said.
Attacks on Gulf states on have tested a two-week ceasefire announced by President Donald Trump this week, with the UAE and Kuwait activating air defence systems on Wednesday. Meanwhile, Qatar's Ministry of Defence said it had intercepted ballistic missiles and drones from Iran.
Tehran has launched repeated attacks on key Gulf energy sites since the US and Israel launched co-ordinated strikes on Iran on February 28. And Iran's effective closure of the Strait of Hormuz, a vital chokepoint in the world's oil deliveries, has led to one of the greatest supply shocks in decades.
Aramco chief executive Amin Nasser has previously warned that a prolonged closure of Hormuz would lead to “catastrophic consequences”. Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, has accused Iran of “economic terrorism”.
“The Strait must be open – fully, unconditionally and without restriction. Energy security and global economic stability depend on it. The weaponisation of this vital waterway, in any form, cannot stand,” Dr Al Jaber wrote in a LinkedIn post on Thursday.
The World Bank this week downgraded its growth forecasts for Saudi Arabia, the UAE and a host of countries in the Middle East due to the war's impact. Saudi Arabia, the Arab world's largest economy, is now projected to see economic growth of 3.1 per cent, down from the World Bank's previous 4.3 per cent forecast. The UAE received a downwards revision from 5.1 per cent to 2.4 per cent. Economic growth for the entire Gulf is now expected to slow to a 1.8 per cent pace, down from the World Bank's prior 4 per cent projection.
The International Monetary Fund, which will update its global economic forecast next week, said it will lower its growth prospects for this year because of the war.
