Monday 02/March/2026 – 09:09 AM
Global reports expect that major oil producers in the Middle East will be forced to suspend production if the expansion of the conflict leads to the effective closure of the Strait of Hormuz for more than 25 days, according to analysts from JPMorgan Chase & Co., according to Bloomberg.
“Beyond this point, storage restrictions will lead to a mandatory shutdown of production,” analysts, including Natasha Kaneva, said in a note.
Major oil producers in the Middle East stopped
Mounted The United States and Israel attacks Iran Over the weekend, Iran responded with a barrage of missiles targeting several countries, including Qatar, the United Arab Emirates, Kuwait and Bahrain. US President Donald Trump stated that US forces will continue bombing Iran until its goals are achieved.
Oil tanker traffic through the Strait of Hormuz, a vital waterway off the coast of Iran through which nearly a fifth of the world’s oil and liquefied natural gas passes, has effectively stopped as a result of a voluntary halt by shipowners, although it has not been officially closed. JP Morgan reported that export flows through the corridor fell on February 28 to about 4 million barrels of almost entirely Iranian crude oil, compared to a usual daily average of about four times that amount.
Movement of oil tankers through the Strait of Hormuz
About 19 million barrels of liquid fuel exports, including 16 million barrels of crude oil, transit the strait, JPMorgan analysts wrote in a note dated March 1. They added that while countries such as Saudi Arabia and the UAE could send some oil via pipeline to alternative sea routes, quantities are limited.
In the seven oil-producing countries of the Persian Gulf — which also includes Iraq, Kuwait, Qatar, Oman and Iran — JPMorgan estimated that available onshore storage capacity for crude oil is about 343 million barrels, the equivalent of 22 days of halted production. Additional storage options at sea could provide additional reserve, as there are about 60 empty oil tankers in the Gulf region capable of holding about 50 million barrels, extending operations for an additional three to four days.
