Saudi Arabia boosts oil output amid fears of Iran disruption

Saudi Arabia is increasing oil production and exports as part of a contingency plan in case potential U.S. military action against Iran disrupts regional supply, according to sources familiar with the matter.

The move comes as U.S. President Donald Trump considers possible strikes aimed at pressuring Tehran over its nuclear programme. In recent weeks, Washington has reinforced its military presence in the Middle East.

Under the contingency plan, Riyadh is raising output to ensure additional crude can be exported if regional flows are affected. The kingdom is expected to scale back production later to remain aligned with OPEC+ quotas should no disruption occur.

Iran accounts for more than 3% of global oil production and has warned it would retaliate against any attack. Such escalation could threaten energy shipments through the Strait of Hormuz, a critical chokepoint through which more than 20 million barrels of crude, condensate and refined products transit daily, including supplies from Saudi Arabia, the UAE, Kuwait and gas exports from Qatar.

As OPEC’s largest producer, Saudi Arabia has historically adjusted output to stabilize markets during supply shocks or periods of oversupply. The current move signals Riyadh’s readiness to cushion potential volatility in global oil markets.