FACTBOX-Iran War Causes Major Oil, Gas Disruptions

United States: The U.S.-Israeli war on Iran and Tehran's attacks on Gulf neighbours have disrupted oil and natural gas exports from the Middle East and forced production stoppages.

The war has halted shipments via the world's most important oil artery, the Strait of Hormuz, which handles 20% of global oil and LNG supply. Saudi oil giant Aramco, the world's top oil exporter, warned on Tuesday about "catastrophic consequences" for the global oil market if the strait doesn't open.

Below are the main energy disruptions so far:

PRODUCTION SHUTDOWNS

- Saudi Arabia has cut oil production only marginally so far to around 9.8 million bpd from its OPEC quota of 10.1 million bpd, according to Energy Aspects estimates. In February, it produced around 10.9 million bpd to boost exports in preparation for possible supply disruptions.

Aramco has begun cutting output at two of its oilfields, two sources said on Monday. Saudi Arabia produced around 10.3 million barrels per day of crude oil in February.

Last week, Saudi Arabia suspended output at its 550,000-bpd Ras Tanura refinery and began rerouting crude loadings from eastern ports to Yanbu on the Red Sea. The refinery was struck again on March 4.

- Overall, Middle East crude output has fallen by about 4.9 million barrels per day (bpd) since the start of the hostilities, including cuts of 2.4 million bpd in Iraq, 0.7 million bpd in Kuwait, and 0.6 million bpd in the UAE, according to Energy Aspects.

- UAE drone attack: Abu Dhabi state oil giant ADNOC has shut its 922,000 barrels of oil per day Ruwais refinery following a drone strike that caused a fire, a source with knowledge of the situation said on Tuesday. A fire also broke out at the UAE's Fujairah port, a key global oil storage and bunkering hub.

- Kuwait force majeure: Kuwait Petroleum Corporation began cutting oil output and declared force majeure on March 7.

- Iraq: Oil production from Iraq's main southern oilfields has fallen by 70% to just 1.3 million barrels per day from 4.3 million, sources said on March 8.

On top of that, in Iraqi Kurdistan several companies have stopped output. The region exported 200,000 bpd by pipeline to Turkey in February.

- QatarEnergy LNG halted: Qatar stopped operations at its LNG facilities on March 2, affecting some of the world's largest plants and a source that supplies about 20% of global LNG. QatarEnergy also suspended parts of downstream output a day later. It declared force majeure on LNG shipments on March 4.

- Bahrain: Bapco Energies on Monday declared force majeure on its group operations following an attack on its 380,000 barrels per day (bpd) Sitra refinery, which mainly buys Saudi crude.

- Israel also curtailed parts of its oil and gas production.

- In Iran, Israeli strikes have hit multiple fuel depots and Kharg Island, Iran's main oil export outlet, although the extent of damage wasn't clear.

SHIPPING

- Strait of Hormuz: traffic through the Strait was largely closed for a 10th day. Some 10 ships came under attack and a very limited number of tankers managed to sail in and out of the Strait.

Iran declared the Strait closed on March 2 and warned that Iran would fire on any ship attempting to pass.

- War risk insurance cancelled: Major marine insurers are cancelling war-risk coverage for vessels operating in Iranian, Gulf and adjacent waters.

- U.S. offers assurances: President Donald Trump said the U.S. Navy could escort tankers through the Strait and directed the U.S. International Development Finance Corporation to provide political-risk insurance and financial guarantees for Gulf shipping, though shipowners and analysts doubt this will be enough.

IMPACT ON CONSUMERS

- Numerous Asian refineries and petrochemical companies have cut runs or declared force majeure as the war disrupts supplies of feedstocks including naphtha, used for steam crackers.

- South Korea will cap domestic fuel prices to contain price spikes and discourage panic buying.

- Vietnam plans to remove import tariffs on fuels until the end of April to ensure sufficient supply.

- Bangladesh will close all public and private universities from Monday and bring forward Eid al-Fitr holidays to conserve electricity.

- G7 energy ministers will discuss how to tackle soaring energy prices due to the war in Iran on a call on Tuesday, while a group of European Union leaders will do so later in the day, officials said. So far, G7 countries have stopped short of releasing strategic oil stockpiles to lower prices.