{"id":92700,"date":"2026-03-09T00:00:00","date_gmt":"2026-03-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=92700"},"modified":"2026-03-09T06:23:57","modified_gmt":"2026-03-09T06:23:57","slug":"the-hormuz-crisis-moves-onshore-as-production-halts","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/03\/09\/the-hormuz-crisis-moves-onshore-as-production-halts\/","title":{"rendered":"The Hormuz crisis moves onshore as production halts"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Once<\/strong><strong> a producer\u2019s storage is full, the <\/strong><strong><a href=\"https:\/\/www.gbcghanaonline.com\/features\/oil-and-gas-prices-hit-two-year-high-as-qatar-warns-of-production-halt\/2026\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">taps<\/a><\/strong><strong><a href=\"https:\/\/www.gbcghanaonline.com\/features\/oil-and-gas-prices-hit-two-year-high-as-qatar-warns-of-production-halt\/2026\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">must stop<\/a><\/strong><strong>.<\/strong> For Gulf nations, a halt in oil production not only represents lost revenue, but also long-term technical risks. Shutting down a well can damage the reservoir, meaning that restarting production once the Strait reopens will not be simple.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>If Hormuz stays shut<\/strong>, the squeeze will start spreading into feedstocks and refined products as more Gulf producers lose room to unsold barrels. QatarEnergy <a href=\"https:\/\/enterpriseam.com\/logistics\/2026\/03\/05\/conflict-spreads-into-different-countries-and-more-sectors\/\" target=\"_blank\" rel=\"noopener\">declared<\/a> force majeure on its LNG shipments last week, and Saudi Arabia and the UAE could be <a href=\"https:\/\/www.reuters.com\/business\/energy\/kuwait-cuts-oil-production-precaution-amid-iran-tensions-kpc-says-2026-03-07\/\" target=\"_blank\" rel=\"noopener\">next<\/a> as stores pile up and the export route stays blocked, pushing the crisis past shipping disruption and into physical supply loss.<\/p>\n<p class=\"tag-border-left\">Things are already starting to hurt<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>The <\/strong><strong><a href=\"https:\/\/www.wam.ae\/en\/article\/bz2fvmx-fire-fujairah-oil-industry-zone-brought-under\" target=\"_blank\" rel=\"noopener\">Fujairah Oil Industry Zone<\/a><\/strong><strong> saw another fire caused by falling debris \u2014 <\/strong>after air defenses intercepted an Iranian drone and the emirate <a href=\"https:\/\/www.wam.ae\/en\/article\/1740tbx-competent-authorities-fujairah-contain-fire\" target=\"_blank\" rel=\"noopener\">saw another fire<\/a> early this morning from falling shrapnel. <a href=\"https:\/\/www.wam.ae\/en\/article\/bz3mqg3-uae-air-defences-intercept-ballistic-missiles-113\" target=\"_blank\" rel=\"noopener\">As of<\/a> yesterday, Iran had launched 1.4k drones against the UAE \u2014 1.3k of which were intercepted while 80 landed \u2014 as well as eight cruise missiles that were all intercepted.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Meanwhile, <\/strong><strong>Kuwait<\/strong><strong> Petroleum Corporation cut crude output and refining <\/strong><strong>throughput and <\/strong><strong><a href=\"https:\/\/www.reuters.com\/business\/energy\/kuwait-cuts-oil-production-precaution-amid-iran-tensions-kpc-says-2026-03-07\/\" target=\"_blank\" rel=\"noopener\">declared<\/a><\/strong><strong> force majeure on Saturday<\/strong> after the Hormuz crisis blocked shipments for an eighth straight day. Kuwait was producing around 2.6 mn bpd in February, and it\u2019s also a major naphtha exporter to Asia and jet fuel exporter to north-west Europe.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>The pressure is also hitting fuel infrastructure onshore.<\/strong> A drone <a href=\"https:\/\/www.petra.gov.jo\/Include\/InnerPage.jsp?ID=82193&amp;lang=en&amp;name=en_news&amp;cat=en_news\" target=\"_blank\" rel=\"noopener\">struck<\/a> two fuel tanks at Kuwait International Airport on Sunday, igniting a fire that was later brought under control with no injuries reported.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Iraq<\/strong><strong> also <\/strong><strong><a href=\"https:\/\/www.alsumaria.tv\/news\/economy\/557735\/%D8%AA%D9%88%D9%82%D9%81-%D8%A7%D9%86%D8%AA%D8%A7%D8%AC-%D8%A7%D9%84%D8%B1%D9%85%D9%8A%D9%84%D8%A9-%D9%88%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86-%D9%85%D9%86-%D8%A7%D9%84%D9%86%D9%81%D8%B7-%D9%8A%D9%83%D9%84%D9%81-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-128-%D9%85%D9%84%D9%8A%D9%88%D9%86-%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D9%8A%D9%88%D9%85%D9%8A%D8%A7\" target=\"_blank\" rel=\"noopener\">halted production<\/a><\/strong><strong> at the Rumalia oil field <\/strong>due to limited storage capacity. The country had already suspended all crude oil shipments through the Kirkuk-Ceyhan pipeline to Turkey\u2019s Mediterranean coast <a href=\"https:\/\/enterpriseam.com\/logistics\/2026\/03\/04\/iran-vows-to-attack-any-vessel-transiting-hormuz-gcc-energy-infrastructure-targeted\/\" target=\"_blank\" rel=\"noopener\">last week<\/a>, removing approximately 200k bpd from global markets and threatening the already fragile economy of the Kurdistan region of Iraq. A prolonged shutdown at Rumaila and fields in Kurdistan could have a significant impact on Iraq\u2019s production levels and its trade with global markets \u2013\u2013 with the duel suspensions costing the country some USD 128 mn per day.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>The Rumalia oilfield, Iraq\u2019s largest producing point<\/strong>, spans some 1.6k sqm and accounts for one-third of the country\u2019s output.<\/p>\n<p class=\"tag-border-left\">Ripples across the region<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Aramco is temporarily rerouting some oil shipments via the Red Sea <\/strong><strong>port of Yanbu<\/strong>, <a href=\"https:\/\/x.com\/alekhbariyaBRK\/status\/2030371191052292546\" target=\"_blank\" rel=\"noopener\">Al Ekhbariya<\/a> reports. The oil giant is working to ensure the reliability of oil supplies amid the ongoing conflict, with plans to restore operations once conditions stabilize, the <a href=\"http:\/\/x.com\/alekhbariyaBRK\/status\/2030371612990804464\" target=\"_blank\" rel=\"noopener\">company reportedly said<\/a>.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>REMEMBER- The Kingdom reportedly <\/strong><strong><a href=\"https:\/\/enterpriseam.com\/ksa\/2026\/03\/05\/crude-supplies-pivot-to-red-sea-to-bypass-hormuz\/\" target=\"_blank\" rel=\"noopener\">rerouted Asian energy<\/a><\/strong><strong> shipments to the Red Sea <\/strong><strong>port last week.<\/strong> Rising costs tied to the Strait of Hormuz disruption \u2014 higher ins. premiums and security risks \u2014 have prompted a logistical pivot.<\/p>\n<p class=\"tag-border-left\">A light at the end of the strait?<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Adnoc confirmed its <\/strong><strong><a href=\"https:\/\/www.wam.ae\/en\/article\/bz31bk4-adnoc-group-update-%D8%A4ontinued-operations\" target=\"_blank\" rel=\"noopener\">operations are going ahead<\/a><\/strong> <strong> despite the current regional <\/strong><strong>tensions. <\/strong>The company said it is leaning on export capacity that bypasses the strait, as well as its international storage facilities, without disclosing specifics. It seems like <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-07\/kuwait-cuts-oil-and-refining-output-as-hormuz-transits-slow\" target=\"_blank\" rel=\"noopener\">Adnoc is increasingly relying<\/a> on its Habshan-Fujairah pipeline \u2014 responsible for roughly half of the UAE\u2019s total oil production at a 1.5 mn\/bpd capacity \u2014 which avoids Hormuz entirely.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Sending mixed signals: <\/strong>Adnoc also said it was \u201cmanaging offshore production levels to address storage requirements,\u201d suggesting it planned to cut back oil production, without providing further details.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>The Hormuz <\/strong><strong>oil supply disruptions will be offset by a general global oversupply<\/strong>, a <a href=\"https:\/\/www.fitchratings.com\/research\/corporate-finance\/strait-of-hormuz-closure-likely-temporary-oil-price-impact-limited-04-03-2026\" target=\"_blank\" rel=\"noopener\">Fitch<\/a><a href=\"https:\/\/www.fitchratings.com\/research\/corporate-finance\/strait-of-hormuz-closure-likely-temporary-oil-price-impact-limited-04-03-2026\" target=\"_blank\" rel=\"noopener\">Ratings<\/a> report finds, noting that the Hormuz closure is likely to be \u201ctemporary\u201d and cause \u201climited\u201d shock to oil prices. Global inventories sat at 8.2 bn barrels at the end of 2025 \u2013\u2013 sufficient enough to cover a pause in oil shipments through the Strait of Hormuz for over 400 days, Fitch data finds. High global inventories and significant spare capacity are set to subdue the geopolitical risk premium and oil price spikes.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Fitch remains steady on its 2026 forecast.<\/strong> The ratings agency does not expect its USD 63 \/ bbl Brent oil forecast for 2026 to experience a significant increase, noting that \u201ca protracted closure would affect both exporting and importing countries and therefore is not our baseline assumption.\u201d The agency is expecting supply to rise by 2.4 mm \/ bpd and demand by 0.8 mm \/ bpd.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\">\n","protected":false},"excerpt":{"rendered":"<p>KPC declares force majeure, Iraq shuts down another field, Aramo reroutes barrels<\/p>\n","protected":false},"author":1,"featured_media":92701,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41],"tags":[126,17,35,983,32,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-92700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-disruption-watch","tag-enterprise-logistics","tag-iraq","tag-oil-gas","tag-trade","tag-uae","wpautop","entry"],"acf":{"mongo_id":"716f9920-2d56-462e-a98d-1150603cd300","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/1\/759.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Gulf producers forced to turn off the taps","related_issue":[92693],"teaser":"KPC declares force majeure, Iraq shuts down another field, Aramo reroutes barrels","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Hormuz crisis moves onshore as production halts - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/03\/09\/the-hormuz-crisis-moves-onshore-as-production-halts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Hormuz crisis moves onshore as production halts\" \/>\n<meta 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