The escalating Iran war has now struck the heart of Gulf energy infrastructure. A suspected drone strike triggered a fire at the massive Ruwais Industrial Complex in the United Arab Emirates, forcing authorities to shut down the country’s flagship refinery as a precaution.

The facility is operated by Abu Dhabi National Oil Company and can process around 922,000 barrels of crude oil per day, making it one of the largest single-site refineries in the world. Emergency teams rushed to contain the fire after the strike, though officials say there were no reported injuries.

US-Iran War: Drone Strike Shuts UAE’s Ruwais Refinery As Iran War Hits Gulf Oil 

Government sources say India is in a comfortable position on its energy needs despite rising tensions in West Asia. Officials confirmed that the country currently has around 25 days of crude oil and fuel stocks, providing a cushion against supply disruptions. New Delhi is also in close contact with global energy bodies like OPEC and the International Atomic Energy Agency to closely monitor the evolving situation and ensure energy security.

US-Iran War: Government Sources Say India Has 25 Days of Crude Oil, Fuel Stocks 

If the conflict involving Iran and the Gulf states, resulting from the Israel-US joint operation and retaliatory strikes by Tehran, does not stop by Friday, there could be a supply cut of 3.3 million barrels per day of crude oil. The warning from JP Morgan came amid disruptions in the Strait of Hormuz, the strategic waterway between the Persian Gulf and the Gulf of Oman, which is the world’s key oil transit chokepoint. The strait carries nearly a fifth of global oil and liquefied natural gas flows.<h2>Iran Revolutionary Guards claim to have taken total control of Strait of Hormuz</h2>The situation escalated amid Iranian media reports that the Islamic Revolutionary Guards have closed the Strait of Hormuz and that Iran would fire on any ship attempting to pass. If the waterway is closed for long, &nbsp;the losses could escalate to 3.8 million bpd around day 15 since the start of the conflict on February 27. By day 18, it could reach 4.7 million bpd, JP Morgan said in a note.<a href="https://www.wionews.com/videos/us-iran-war-can-israel-us-replenish-interceptors-faster-than-iran-makes-drones-1772607562517/embed">https://www.wionews.com/videos/us-iran-war-can-israel-us-replenish-interceptors-faster-than-iran-makes-drones-1772607562517/embed</a><h2>Iraq, Kuwait would be forced to shut oil production</h2>If oil tankers cannot move freely through the strait, production will have to be cut by countries with low storage capacity. Iraq will be forced to reduce oil production by more than 3 million bpd within a few days in such a scenario, Reuters news agency reported, citing Iraqi oil officials.Iraq can hold roughly three days of storage before it is forced to halt exports through the strait, making it most vulnerable due to its limited onshore storage capacity.&nbsp;Iraq has reportedly already begun partial shut-ins, with around 1.5 million bpd affected so far.Kuwait, meanwhile, could continue for roughly 14 days before it is also forced to halt production.Saudi Arabia has more storage facilities, possibly sufficient for 30 days.Also read: <a href="https://www.wionews.com/world/live-blog-us-israel-iran-war-live-updates-donald-trump-benjamin-netanyahu-ali-khamenei-mojtaba-khamenei-new-supreme-leader-assembly-of-experts-march-2026-1772584866186">US-Israel-Iran war LIVE updates: 'We can sustain this fight easily', says Hegseth</a><h2>Storage capacity could be exhausted in 25 days if crude does not move across the Strait&nbsp;</h2>The combined onshore crude storage capacity across seven major Gulf producers – Saudi Arabia, UAE, Iraq, Kuwait, Qatar, Oman and Iran – is estimated at about 343 million barrels.This equates to nearly 22 days of stranded production buffer, though additional offshore and empty tanker capacity could add a few more days, extending it to around 25 days.After this, widespread mandatory production shut-ins would have to begin, simply because there would be no place to store the crude oil.Also read: <a href="https://www.wionews.com/world/-struck-covert-underground-nuclear-site-in-iran-used-for-secret-weapons-development-says-israel-1772573229766">'Struck ‘covert underground’ nuclear site in Iran used for secret weapons-development', says Israel</a><h2>A chain reaction that could increase crude oil prices</h2>Production shut-ins could raise oil prices, with Brent potentially reaching 100–120 dollars per barrel in severe, prolonged cases, according to reports.The Strait of Hormuz normally handles 16–20 million bpd of crude equivalent under typical conditions. The JP Morgan note emphasised that “speed and decisiveness” in response are critical, as delays quickly translate into forced shut-ins, particularly for lower-storage countries such as Iraq.Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

If the Strait of Hormuz is disrupted by Iran, countries like Iraq and Kuwait could cut 3.3 million bpd of crude oil production. This risks Gulf crude supply losses and a sharp spike in global oil prices

If the conflict involving Iran and the Gulf states, resulting from the Israel-US joint operation and retaliatory strikes by Tehran, does not stop by Friday, there could be a supply cut of 3.3 million barrels per day of crude oil. The warning from JP Morgan came amid disruptions in the Strait of Hormuz, the strategic waterway between the Persian Gulf and the Gulf of Oman, which is the world’s key oil transit chokepoint. The strait carries nearly a fifth of global oil and liquefied natural gas flows. Iran Revolutionary Guards claim to have taken total control of Strait of Hormuz The situation escalated amid Iranian media reports that the Islamic Revolutionary Guards have closed the Strait of Hormuz and that Iran would fire on any ship attempting to pass. If the waterway is closed for long, the losses could escalate to 3.8 million bpd around day 15 since the start of the conflict on February 27. By day 18, it could reach 4.7 million bpd, JP Morgan said in a note. https://www.wionews.com/videos/us-iran-war-can-israel-us-replenish-interceptors-faster-than-iran-makes-drones-1772607562517/embed Iraq, Kuwait would be forced to shut oil production If oil tankers cannot move freely through the strait, production will have to be cut by countries with low storage capacity. Iraq will be forced to reduce oil production by more than 3 million bpd within a few days in such a scenario, Reuters news agency reported, citing Iraqi oil officials. Iraq can hold roughly three days of storage before it is forced to halt exports through the strait, making it most vulnerable due to its limited onshore storage capacity. Iraq has reportedly already begun partial shut-ins, with around 1.5 million bpd affected so far. Kuwait, meanwhile, could continue for roughly 14 days before it is also forced to halt production. Saudi Arabia has more storage facilities, possibly sufficient for 30 days. Also read: US-Israel-Iran war LIVE updates: 'We can sustain this fight easily', says Hegseth Storage capacity could be exhausted in 25 days if crude does not move across the Strait The combined onshore crude storage capacity across seven major Gulf producers – Saudi Arabia, UAE, Iraq, Kuwait, Qatar, Oman and Iran – is estimated at about 343 million barrels. This equates to nearly 22 days of stranded production buffer, though additional offshore and empty tanker capacity could add a few more days, extending it to around 25 days. After this, widespread mandatory production shut-ins would have to begin, simply because there would be no place to store the crude oil. Also read: 'Struck ‘covert underground’ nuclear site in Iran used for secret weapons-development', says Israel A chain reaction that could increase crude oil prices Production shut-ins could raise oil prices, with Brent potentially reaching 100–120 dollars per barrel in severe, prolonged cases, according to reports. The Strait of Hormuz normally handles 16–20 million bpd of crude equivalent under typical conditions. The JP Morgan note emphasised that “speed and decisiveness” in response are critical, as delays quickly translate into forced shut-ins, particularly for lower-storage countries such as Iraq. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

If the Strait of Hormuz is disrupted by Iran, countries like Iraq and Kuwait could cut 3.3 million bpd of crude oil production. This risks Gulf crude supply losses and a sharp spike in global oil prices

Iraq, Kuwait could stop oil exports in days; 3.3 million barrels per day of crude supply to be hit if Iran vs Israel-US conflict drags on

Government sources said India has sufficient crude oil reserves for 25 days and adequate petrol and diesel stocks for another 25 days, totaling around 50 days of energy security amid rising global tensions. With volatility in West Asia impacting oil markets, officials emphasized that fuel supplies remain stable and there is no immediate cause for concern. India continues to monitor global developments closely to safeguard energy needs.


India Has 50 Days of Oil Supply Amid Global Tensions: Govt Sources

Global commodities are reacting sharply to rising tensions in West Asia. Crude oil prices are in focus as geopolitical risks threaten supply from the Gulf region, prompting concerns over energy security. Gold continues its upward trajectory, trading above $5,300 per ounce on US exchanges, as investors seek safe-haven assets amid uncertainty. Analysts warn that continued escalation could further disrupt oil exports and impact global markets.

Global Market: Crude Oil Surges as West Asia Tensions Rise | Gold Extends Gains Above $5,300

The global oil prices saw their most significant surge on Monday (Mar 02) in four years after it spiked nearly 10 per cent, hitting a high of Rs 6,700 (roughly $80-$82) per barrel as the US-Israeli strike on Iran entered a crucial phase, extending the conflict across the Gulf countries. The most substantial to the oil market comes after Saudi Arabia's state oil giant Aramco shut its Ras Tanura refinery after it was hit by an Iranian drone.&nbsp;Saudi defence officials confirmed they intercepted the drones, but falling shrapnel caused a "limited fire" at the facility. While the fire was quickly extinguished with no reported casualties, Saudi Aramco elected to shut down the refinery as a precautionary measure.&nbsp;The Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude. It handles roughly 7% of the global oil supply flows.The attack is also likely to move Saudi Arebaia and neighbouring Gulf states closer to joining the US and Israeli military operations against Iran.&nbsp;Along with the shutdown of Saudi refinery, the global oil supply came under severe strain following Iran's Revolutionary Guards closing the Strait of Hormuz, which controls nearly 20 per cent of the world's oil supply and 30 per cent of oil shipments to India.&nbsp;Also Read: <a href="https://www.wionews.com/world/watch-saudi-aramco-suspends-ras-tanura-operations-after-drone-strike-amid-israel-iran-war-1772451329582">WATCH | Saudi Aramco suspends Ras Tanura operations after drone strike amid Israel-Iran war</a>&nbsp;The US-Israeli operation in Iran entered its third day on Monday after assassinating Supreme Leader Ayatollah Ali Khamenei in a precision strike on a high-security compound in Tehran. Several other top leaders were also killed after the US and Israel launched a massive coordinated aerial campaign on Saturday. The strikes, codenamed Operation Roaring Lion by Israel and Operation Epic Fury by the United States, struck multiple sites across Iran. The strikes targeted government buildings in Tehran and suspected nuclear facilities, specifically aiming to decapitate the highest levels of Iranian leadership. In retaliation, Iran's Revolutionary Guard launched strikes on Israel, US military bases, and its allies across West Asia, including Qatar, Iraq, UAE, Bahrain, Saudi Arabia, and Jordan.Meanwhile, Trump threatened Iranian forces to put down their weapons and called on Iran's people to rise to "take back your country" as this is "the single greatest chance" after Khamenei's death.&nbsp;&nbsp;(Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude.

The global oil prices saw their most significant surge on Monday (Mar 02) in four years after it spiked nearly 10 per cent, hitting a high of Rs 6,700 (roughly $80-$82) per barrel as the US-Israeli strike on Iran entered a crucial phase, extending the conflict across the Gulf countries. The most substantial to the oil market comes after Saudi Arabia's state oil giant Aramco shut its Ras Tanura refinery after it was hit by an Iranian drone. Saudi defence officials confirmed they intercepted the drones, but falling shrapnel caused a "limited fire" at the facility. While the fire was quickly extinguished with no reported casualties, Saudi Aramco elected to shut down the refinery as a precautionary measure. The Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude. It handles roughly 7% of the global oil supply flows. The attack is also likely to move Saudi Arebaia and neighbouring Gulf states closer to joining the US and Israeli military operations against Iran. Along with the shutdown of Saudi refinery, the global oil supply came under severe strain following Iran's Revolutionary Guards closing the Strait of Hormuz, which controls nearly 20 per cent of the world's oil supply and 30 per cent of oil shipments to India. Also Read: WATCH | Saudi Aramco suspends Ras Tanura operations after drone strike amid Israel-Iran war The US-Israeli operation in Iran entered its third day on Monday after assassinating Supreme Leader Ayatollah Ali Khamenei in a precision strike on a high-security compound in Tehran. Several other top leaders were also killed after the US and Israel launched a massive coordinated aerial campaign on Saturday. The strikes, codenamed Operation Roaring Lion by Israel and Operation Epic Fury by the United States, struck multiple sites across Iran. The strikes targeted government buildings in Tehran and suspected nuclear facilities, specifically aiming to decapitate the highest levels of Iranian leadership. In retaliation, Iran's Revolutionary Guard launched strikes on Israel, US military bases, and its allies across West Asia, including Qatar, Iraq, UAE, Bahrain, Saudi Arabia, and Jordan. Meanwhile, Trump threatened Iranian forces to put down their weapons and called on Iran's people to rise to "take back your country" as this is "the single greatest chance" after Khamenei's death. (Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.)

The Ras Tanura complex, on the kingdom’s Gulf coast, houses one of the Middle East’s largest refineries with a capacity of 550,000 barrels per day (bpd) and serves as a critical export terminal for Saudi crude.

Will oil prices skyrocket? Saudi Arabia shuts its largest refinery after Iran strike

A few oil majors ​and top trading houses have ‌suspended ⁠crude ⁠oil ​and fuel shipments through the ​Strait of Hormuz after the US-Israel launched an attack on Iran on Saturday (February 28, 2026). "Our ships will stay ‌put for several ​days," a ​top executive ⁠at a major trading desk said to news agency Reuters.&nbsp;After Israel launched a pre-emptive strike against Iran, the United States also struck Tehran, prompting tensions in the Middle East. The escalating tension has undermined prospects for a diplomatic resolution to the nuclear standoff between Tehran and Western powers.&nbsp;Two US officials told news agency Reuters on condition of anonymity that the American military launched a series of strikes targeting multiple sites in Iran. However, the complete extent of the air and naval operations by the US was not immediately known.<h3>Iran launches ‘Operation Roaring Lion’</h3>In retaliation for the attack, Iran has launched "Operation Roaring Lion," firing missile barrages at US bases in Bahrain, Qatar, and Kuwait. These retaliatory strikes have caused civilian casualties in Abu Dhabi and triggered the closure of several national airspaces. Saudi Arabia and other Gulf states have condemned the escalation, fearing a "weeks-long" campaign that could permanently destabilise the global energy market.&nbsp;Meanwhile, a separate source indicated that the Supreme Leader of Iran, Ayatollah Ali Khamenei, shifted to a secure location from Tehran. The latest conflict unfolded after a 12-day air conflict in June between Israel and Iran. The tension in the region followed after repeated warnings from Washington and Tel Aviv that further action would be taken if Iran continues operating its nuclear and ballistic missile programmes.&nbsp;Also read: <a href="https://www.wionews.com/photos/-uae-saudi-arabia-qatar-and-more-6-countries-under-attack-as-us-israel-launch-strike-against-iran-1772274204593">'UAE, Saudi Arabia, Qatar and more': 6 countries under attack as US-Israel launch strike against Iran</a>&nbsp;Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

After Israel launched a pre-emptive strike against Iran, the United States also struck Tehran, prompting tensions in the Middle East. The conflict has undermined prospects for a diplomatic resolution to the nuclear standoff between Tehran and Western powers.

A few oil majors and top trading houses have ‌suspended ⁠crude ⁠oil and fuel shipments through the Strait of Hormuz after the US-Israel launched an attack on Iran on Saturday (February 28, 2026). "Our ships will stay ‌put for several days," a top executive ⁠at a major trading desk said to news agency Reuters. After Israel launched a pre-emptive strike against Iran, the United States also struck Tehran, prompting tensions in the Middle East. The escalating tension has undermined prospects for a diplomatic resolution to the nuclear standoff between Tehran and Western powers. Two US officials told news agency Reuters on condition of anonymity that the American military launched a series of strikes targeting multiple sites in Iran. However, the complete extent of the air and naval operations by the US was not immediately known. Iran launches ‘Operation Roaring Lion’ In retaliation for the attack, Iran has launched "Operation Roaring Lion," firing missile barrages at US bases in Bahrain, Qatar, and Kuwait. These retaliatory strikes have caused civilian casualties in Abu Dhabi and triggered the closure of several national airspaces. Saudi Arabia and other Gulf states have condemned the escalation, fearing a "weeks-long" campaign that could permanently destabilise the global energy market. Meanwhile, a separate source indicated that the Supreme Leader of Iran, Ayatollah Ali Khamenei, shifted to a secure location from Tehran. The latest conflict unfolded after a 12-day air conflict in June between Israel and Iran. The tension in the region followed after repeated warnings from Washington and Tel Aviv that further action would be taken if Iran continues operating its nuclear and ballistic missile programmes. Also read: 'UAE, Saudi Arabia, Qatar and more': 6 countries under attack as US-Israel launch strike against Iran Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

After Israel launched a pre-emptive strike against Iran, the United States also struck Tehran, prompting tensions in the Middle East. The conflict has undermined prospects for a diplomatic resolution to the nuclear standoff between Tehran and Western powers.

Crude oil, fuel shipments via Strait of Hormuz suspended as US-Israel attack on Iran: What next?

While precious metals’ rally indicates rising safe-haven demand, the commodity directly in the line of geopolitical crossfire has been oil. Despite expectations of a deep global oversupply, crude prices have rallied sharply this year. Take a look at this next report for more…


Oil Price Rally Challenges Oversupply Narrative

Russian oil shipments are piling up at sea as diplomatic pressures and sanctions complicate Moscow’s search for buyers. Tankers loaded with crude are facing delays, while global markets react to tightening restrictions and shifting trade alliances.

Russian Oil Piles Up at Sea: Diplomatic Pressures Complicate Russia’s Search for Oil Buyers

US says it will roll back additional 25% tariffs as Indian scale back Russian crude purchases but market data gives US a reality check.

US Says It Will Roll Back Additional 25% Tariffs as Indian Scale Back Russian Crude Purchases

Top 10 assets in the world 2026: With a market value of over US$31 trillion, gold is still seen as one of the safest ways to store wealth.


Top 10 assets in the world by market cap in 2026

As we head into business as usual in 2026, we put the spotlight on how the global energy map is being redrawn. The “battle for oil” is no longer just regional. It is increasingly tied to competition over how oil is priced and paid for globally.

Crude Oil Trade: Is The Petrodollar Dominance Under Threat?

Venezuela’s 303 billion barrels of oil, about 17% of global reserves, make it strategically vital for Donald Trump. The US needs heavy crude for its refineries, wants to curb China’s influence.

Understanding the key factors that make Donald Trump interested in Venezuela’s oil

How Crude Oil Trade is Shifting in 2026

In 2025, crude oil fell over 20 percent to post its deepest annual loss since 2020 on surplus concerns. A punishing supply is expected to weigh on prices this year as well. However, fuel prices at Indian pumps have remained elevated since the government cut petrol and diesel prices in march 2024. In this next report, we dive into why fuel prices haven't come down in the country despite a significant fall in international crude. Take a look.

Why No Change in Indian Pump Price Despite Crude Plunge?

Nigeria Tops Africa’s Crude Export to U.S. With 33.23m Barrels in 2025

As production ramps up and the ongoing conflict with Ukraine continues to disrupt refinery operations. The latest data reveals a notable shift in how russia is exporting its oil. As the war has pushed Moscow to divert supplies away from refineries toward export terminals.


Russian crude exports reach $1.5 bn per week 

Analysts say fuel prices in India may not spike after the festive season if global crude stays low. Retail prices should remain steady unless there’s a supply shock or major policy change. Know more below.

Will fuel prices spike post-festive season? What analysts say

Oil prices showed little movement in early Asian trading on August 8 but remained on track for their steepest weekly losses since late June, driven by concerns over escalating US tariffs and weakening global demand. Brent crude futures were down by three cents to $66.40 a barrel, on course for a decline of more than 4 per cent this week. US West Texas Intermediate (WTI) crude futures also dropped by six cents, or 0.1 per cent, to $63.82 a barrel, poised to fall by over 5 per cent on a weekly basis.The downward pressure on prices intensified after the United States implemented higher tariffs on various trade partners on August 7, which raised fears about a slowdown in global economic activity. Analysts from ANZ Bank noted that reduced economic growth would likely dampen demand for oil, further weakening the market.<h2>OPEC+ cuts and the unwinding of output cuts</h2>The oil market had already been reeling from the decision by OPEC+ to unwind its largest tranche of output cuts in September, months ahead of schedule. This move added additional supply to the market, contributing to the downward pressure on prices. Till August 7, WTI futures had declined for six consecutive sessions, matching a streak not seen since December 2023. If prices settle lower on August 8 as well, this will mark the longest losing streak since August 2021.<h2>Geopolitical developments add uncertainty</h2>Further adding to the uncertainty, the Kremlin confirmed that Russian President Vladimir Putin would soon meet US President Donald Trump, raising hopes of a potential diplomatic resolution to the ongoing war in Ukraine. Meanwhile, new US tariffs against India for purchasing Russian crude oil also kept oil prices from falling further. However, analysts from StoneX warned that this measure is unlikely to significantly reduce the flow of Russian oil to global markets.Kuwait’s Oil Minister, Tareq Al-Roumi, also weighed in on the situation, stating that oil prices are expected to remain below $72 per barrel in the near term. Al-Roumi emphasised that both Kuwait and OPEC are closely monitoring market conditions, particularly the ongoing US tariffs and the geopolitical developments involving Russia. Meanwhile, Kuwait Petroleum Corporation CEO Shaikh Nawaf Al-Sabah revealed that the country is currently producing 2.548 million barrels per day, in line with its OPEC+ commitments, but has the capacity to increase output as needed.&nbsp;(With inputs from agencies)

The downward pressure on prices intensified after the United States implemented higher tariffs on various trade partners on August 7, which raised fears about a slowdown in global economic activity.

Oil prices showed little movement in early Asian trading on August 8 but remained on track for their steepest weekly losses since late June, driven by concerns over escalating US tariffs and weakening global demand. Brent crude futures were down by three cents to $66.40 a barrel, on course for a decline of more than 4 per cent this week. US West Texas Intermediate (WTI) crude futures also dropped by six cents, or 0.1 per cent, to $63.82 a barrel, poised to fall by over 5 per cent on a weekly basis. The downward pressure on prices intensified after the United States implemented higher tariffs on various trade partners on August 7, which raised fears about a slowdown in global economic activity. Analysts from ANZ Bank noted that reduced economic growth would likely dampen demand for oil, further weakening the market. OPEC+ cuts and the unwinding of output cuts The oil market had already been reeling from the decision by OPEC+ to unwind its largest tranche of output cuts in September, months ahead of schedule. This move added additional supply to the market, contributing to the downward pressure on prices. Till August 7, WTI futures had declined for six consecutive sessions, matching a streak not seen since December 2023. If prices settle lower on August 8 as well, this will mark the longest losing streak since August 2021. Geopolitical developments add uncertainty Further adding to the uncertainty, the Kremlin confirmed that Russian President Vladimir Putin would soon meet US President Donald Trump, raising hopes of a potential diplomatic resolution to the ongoing war in Ukraine. Meanwhile, new US tariffs against India for purchasing Russian crude oil also kept oil prices from falling further. However, analysts from StoneX warned that this measure is unlikely to significantly reduce the flow of Russian oil to global markets. Kuwait’s Oil Minister, Tareq Al-Roumi, also weighed in on the situation, stating that oil prices are expected to remain below $72 per barrel in the near term. Al-Roumi emphasised that both Kuwait and OPEC are closely monitoring market conditions, particularly the ongoing US tariffs and the geopolitical developments involving Russia. Meanwhile, Kuwait Petroleum Corporation CEO Shaikh Nawaf Al-Sabah revealed that the country is currently producing 2.548 million barrels per day, in line with its OPEC+ commitments, but has the capacity to increase output as needed. (With inputs from agencies)

The downward pressure on prices intensified after the United States implemented higher tariffs on various trade partners on August 7, which raised fears about a slowdown in global economic activity.

Oil prices set for steepest weekly losses since June amid tariff concerns

Strait of Hormuz is a critical oil and LNG trade route. Closure could disrupt global energy supply, spike oil prices to $130, delay shipping, raise insurance and freight costs, and trigger inflation and supply chain chaos.

How closing the 'Strait of Hormuz' could trigger a global shipping crisis

The US Treasury Department on Tuesday imposed sweeping sanctions on more than 20 companies accused of operating within a vast international network that facilitates the shipment of Iranian crude oil worth billions of dollars to China.
The move is part of the Trump administration&rsquo;s ongoing &ldquo;maximum pressure&rdquo; campaign aimed at curbing Iran&rsquo;s oil revenues and deterring its military and nuclear ambitions.
The sanctioned network is allegedly tied to Iran&rsquo;s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars Company, which the US says uses complex smuggling tactics involving front companies, fake documentation, and shadow fleet tankers to evade sanctions and funnel money into Iran&rsquo;s defence and missile programs, as well as support for terrorist groups across the region.
<h2 dir="ltr">Oil revenue linked to weapons development</h2>
According to the Treasury&rsquo;s Office of Foreign Assets Control (OFAC), the sanctioned entities operate in multiple jurisdictions, including Hong Kong, Singapore, China, and the Seychelles. The network includes companies such as CCIC Singapore PTE Ltd, Huangdao Inspection and Certification Co. Ltd, and Qingdao Linkrich International Shipping Agency Co. Ltd, all of which played roles in masking the Iranian origin of crude shipments and facilitating their delivery to China&rsquo;s independent &ldquo;teapot&rdquo; refineries.
OFAC said revenue from these sales directly funds Iran&rsquo;s development of ballistic missiles, unmanned aerial vehicles (UAVs), and nuclear proliferation activities, as well as attacks by the Houthi group on commercial vessels in the Red Sea and against US and Israeli interests.
Reuters reported that Treasury Secretary Scott Bessent said, &ldquo;This action underscores our continued focus on intensifying pressure on every aspect of Iran&rsquo;s oil trade&rdquo;.&nbsp;
&ldquo;We will continue targeting this primary source of revenue so long as the regime supports terrorism and proliferation of deadly weapons,&rdquo; he added.
<h2 dir="ltr">US warns of further measures amid fragile diplomacy</h2>
The sanctions come just days after the conclusion of a fourth round of nuclear talks between Tehran and Washington. While both countries have expressed a preference for a diplomatic resolution to the decades-long nuclear standoff, deep disagreements remain over key issues such as uranium enrichment levels.
US President Donald Trump, speaking at a US-Saudi investment conference, offered Iran &ldquo;a new and better path&rdquo; but warned that rejection would be met with even harsher measures, including driving Iranian oil exports &ldquo;to zero&rdquo;.
This latest round of sanctions also targets ships, shadow fleet tankers like BALU and ROC, and financial facilitators involved in laundering proceeds back to the AFGS. US officials have signalled that unless China&rsquo;s state-owned enterprises are brought into the sanctions regime, the measures may have limited long-term impact.
Meanwhile, Beijing has criticised the US for what it calls &ldquo;long-arm jurisdiction&rdquo; that undermines international trade, reaffirming its opposition to unilateral sanctions.

Business & Economy: The move is part of the Trump administration’s maximum pressure campaign aimed at curbing Iran’s oil revenues and deterring its military ambitions

The US Treasury Department on Tuesday imposed sweeping sanctions on more than 20 companies accused of operating within a vast international network that facilitates the shipment of Iranian crude oil worth billions of dollars to China. The move is part of the Trump administration’s ongoing “maximum pressure” campaign aimed at curbing Iran’s oil revenues and deterring its military and nuclear ambitions. The sanctioned network is allegedly tied to Iran’s Armed Forces General Staff (AFGS) and its front company, Sepehr Energy Jahan Nama Pars Company, which the US says uses complex smuggling tactics involving front companies, fake documentation, and shadow fleet tankers to evade sanctions and funnel money into Iran’s defence and missile programs, as well as support for terrorist groups across the region. Oil revenue linked to weapons development According to the Treasury’s Office of Foreign Assets Control (OFAC), the sanctioned entities operate in multiple jurisdictions, including Hong Kong, Singapore, China, and the Seychelles. The network includes companies such as CCIC Singapore PTE Ltd, Huangdao Inspection and Certification Co. Ltd, and Qingdao Linkrich International Shipping Agency Co. Ltd, all of which played roles in masking the Iranian origin of crude shipments and facilitating their delivery to China’s independent “teapot” refineries. OFAC said revenue from these sales directly funds Iran’s development of ballistic missiles, unmanned aerial vehicles (UAVs), and nuclear proliferation activities, as well as attacks by the Houthi group on commercial vessels in the Red Sea and against US and Israeli interests. Reuters reported that Treasury Secretary Scott Bessent said, “This action underscores our continued focus on intensifying pressure on every aspect of Iran’s oil trade”. “We will continue targeting this primary source of revenue so long as the regime supports terrorism and proliferation of deadly weapons,” he added. US warns of further measures amid fragile diplomacy The sanctions come just days after the conclusion of a fourth round of nuclear talks between Tehran and Washington. While both countries have expressed a preference for a diplomatic resolution to the decades-long nuclear standoff, deep disagreements remain over key issues such as uranium enrichment levels. US President Donald Trump, speaking at a US-Saudi investment conference, offered Iran “a new and better path” but warned that rejection would be met with even harsher measures, including driving Iranian oil exports “to zero”. This latest round of sanctions also targets ships, shadow fleet tankers like BALU and ROC, and financial facilitators involved in laundering proceeds back to the AFGS. US officials have signalled that unless China’s state-owned enterprises are brought into the sanctions regime, the measures may have limited long-term impact. Meanwhile, Beijing has criticised the US for what it calls “long-arm jurisdiction” that undermines international trade, reaffirming its opposition to unilateral sanctions.

US sanctions over 20 companies for facilitating Iranian oil shipments to China

Crude oil prices experienced a significant decline, falling below $60 per barrel briefly -- this was following OPEC+'s announcement to increase production by 411,000 barrels per day starting in June. This move comes after a similar increase in May and has raised concerns about a potential oversupply in the market.

Brent trades around $60 after OPEC decision

Asian markets traded mixed with Japan’s Nikkei 225 inching up slightly as investors digested fresh inflation data.

Crude oil gains on new sanctions against Iran

The US imposed sanctions on Wednesday on Shandong Shengxing Chemical Co. Ltd, a Chinese refinery, for buying Iranian crude oil worth over USD 1 billion as President Donald Trump&rsquo;s administration seeks to ramp up pressure on Tehran. The U.S. Treasury Department said in a statement the action would increase pressure on Chinese importers of Iranian oil as Trump seeks to restore his &ldquo;maximum pressure&rdquo; campaign on Iran, which includes efforts to drive its oil exports down to zero.
The action comes as the Trump administration has relaunched negotiations with Iran over its nuclear programme this month, with talks in Oman last weekend and a second round expected in Rome this weekend. A statement from the US State Department said, &ldquo;The United States is today sanctioning Shandong Shengxing Chemical Co, Ltd, a China-based independent &lsquo;teapot&rsquo; refinery, for purchasing more than a billion dollars&rsquo; worth of Iranian crude oil.&rdquo;
Also Read |&nbsp;<a href="https://www.wionews.com/world/amid-ongoing-tariff-war-china-accuses-us-of-cyberattacks-issues-arrest-warrants-for-3-nsa-agents-8964606" target="_blank" rel="noopener">Amid ongoing tariff war, China accuses US of cyberattacks, issues arrest warrants for 3 NSA &lsquo;agents&rsquo;</a>
&ldquo;The President is committed to driving Iran&rsquo;s illicit oil exports, including to China, to zero. The United States is also imposing sanctions on several companies and vessels involved in facilitating Iranian oil shipments to China as part of Iran&rsquo;s &lsquo;shadow&rsquo; fleet,&rdquo; it added.&nbsp; China does not recognise U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators. &ldquo;Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran&rsquo;s oil trade places itself at serious risk,&rdquo; Treasury Secretary Scott Bessent said in the statement.
Also read |&nbsp;<a href="https://www.wionews.com/world/stop-threatening-china-warns-after-us-slaps-beijing-with-whopping-245-tariffs-donald-trump-trade-war-imports-8968395" rel="noopener" target="_blank">'Stop threatening': China warns after US slaps Beijing with whopping 245% tariffs</a><a href="https://www.wionews.com/world/stop-threatening-china-warns-after-us-slaps-beijing-with-whopping-245-tariffs-donald-trump-trade-war-imports-8968395" rel="noopener" target="_blank">&nbsp;</a> &ldquo;The United States is committed to disrupting all actors providing support to Iran&rsquo;s oil supply chain, which the regime uses to support its terrorist proxies and partners.&rdquo;
In his first term, Trump withdrew the U.S. from a 2015 deal between Iran and world powers that placed strict limits on Tehran&rsquo;s uranium enrichment activities in exchange for sanctions relief. Trump also reimposed sweeping U.S. sanctions. Since then, Iran has far surpassed that deal&rsquo;s limits on uranium enrichment.
Also read:&nbsp;<a href="https://www.wionews.com/world/harvard-is-a-joke-trump-slams-ivy-league-for-hiring-birdbrains-and-leftist-dopes-warns-to-cut-federal-funds-donald-trump-us-8968947" target="_blank" rel="noopener">'Harvard is a JOKE': Trump slams Ivy League for hiring 'birdbrains' and 'Leftist dopes', warns to cut federal funds</a> Western powers accuse Iran of having a clandestine agenda to develop nuclear weapons capability by enriching uranium to a high level of fissile purity, above what they say is justifiable for a civilian atomic energy programme. Tehran says its nuclear programme is wholly for civilian power purposes.

World: China does not recognise U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators.

The US imposed sanctions on Wednesday on Shandong Shengxing Chemical Co. Ltd, a Chinese refinery, for buying Iranian crude oil worth over USD 1 billion as President Donald Trump’s administration seeks to ramp up pressure on Tehran. The U.S. Treasury Department said in a statement the action would increase pressure on Chinese importers of Iranian oil as Trump seeks to restore his “maximum pressure” campaign on Iran, which includes efforts to drive its oil exports down to zero. The action comes as the Trump administration has relaunched negotiations with Iran over its nuclear programme this month, with talks in Oman last weekend and a second round expected in Rome this weekend. A statement from the US State Department said, “The United States is today sanctioning Shandong Shengxing Chemical Co, Ltd, a China-based independent ‘teapot’ refinery, for purchasing more than a billion dollars’ worth of Iranian crude oil.” Also Read | Amid ongoing tariff war, China accuses US of cyberattacks, issues arrest warrants for 3 NSA ‘agents’ “The President is committed to driving Iran’s illicit oil exports, including to China, to zero. The United States is also imposing sanctions on several companies and vessels involved in facilitating Iranian oil shipments to China as part of Iran’s ‘shadow’ fleet,” it added. China does not recognise U.S. sanctions and is the largest importer of Iranian oil. China and Iran have built a trading system that uses mostly Chinese yuan and a network of middlemen, avoiding the dollar and exposure to U.S. regulators. “Any refinery, company, or broker that chooses to purchase Iranian oil or facilitate Iran’s oil trade places itself at serious risk,” Treasury Secretary Scott Bessent said in the statement. Also read | 'Stop threatening': China warns after US slaps Beijing with whopping 245% tariffs “The United States is committed to disrupting all actors providing support to Iran’s oil supply chain, which the regime uses to support its terrorist proxies and partners.” In his first term, Trump withdrew the U.S. from a 2015 deal between Iran and world powers that placed strict limits on Tehran’s uranium enrichment activities in exchange for sanctions relief. Trump also reimposed sweeping U.S. sanctions. Since then, Iran has far surpassed that deal’s limits on uranium enrichment. Also read: 'Harvard is a JOKE': Trump slams Ivy League for hiring 'birdbrains' and 'Leftist dopes', warns to cut federal funds Western powers accuse Iran of having a clandestine agenda to develop nuclear weapons capability by enriching uranium to a high level of fissile purity, above what they say is justifiable for a civilian atomic energy programme. Tehran says its nuclear programme is wholly for civilian power purposes.

US slaps sanctions on Chinese refinery for buying Iranian crude oil worth over $1bn

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