Dubai: The US war on Iran is disrupting oil production and shipping routes across the Middle East, tightening global crude supplies and pushing energy prices higher as the conflict increasingly affects major production and export corridors. According to TRTworld.com, Saudi Arabia's crude oil production plunged to 6.24 million barrels per day in August, marking its lowest reported level since 1990. This decline represents a significant drop from July's production level of 8.1 million barrels per day, reversing a sharp recovery from June's 7.1 million barrels per day. The impact of the war extends beyond the immediate conflict zone, affecting both the Gulf and alternative export routes through the Red Sea. Saudi Arabia has increased its reliance on its western export infrastructure, particularly the Red Sea port of Yanbu, due to instability around the Strait of Hormuz complicating traditional Gulf shipping routes. However, the Red Sea corridor has also come under pressure after Yemen's Houthi group declared a maritime embargo against Saudi Arabia on July 20, describing it as a new front in the conflict involving Iran and the United States. The Houthi group subsequently claimed attacks on Saudi-linked vessels and energy facilities, including infrastructure around Yanbu and the Jazan refinery. In response to these threats, tankers have been switching off their Automatic Identification System signals to reduce exposure to attacks. Ship-tracking data indicated a sharp deterioration in Red Sea flows during August, with Saudi crude and condensate loadings from Yanbu falling to a six-month low. Vortexa estimated August loadings at 3.2 million barrels per day, while Kpler put them at 1.5 million barrels per day. Shipping through the Strait of Hormuz has also come under pressure, with vessel transits through the waterway falling to just seven on Wednesday, compared with a 10-day average of 14. Despite the fall in production, Saudi Arabia managed to supply 7.1 million barrels per day to the market in August, according t o its direct communication with OPEC, significantly above its reported production of 6.24 million barrels per day. The disruption has contributed to tighter global crude supplies and higher oil prices. Brent crude climbed above $100 per barrel this week as renewed fighting between the United States and Iran and attacks on shipping heightened concerns over Middle Eastern energy supplies. By Friday, Brent futures stood at $106 per barrel as of 0800 GMT, while West Texas Intermediate traded at $101. Crude oil prices had risen by approximately 10 percent on a weekly basis. The energy shock has also impacted financial markets. Asian shares declined on Friday, following Wall Street losses, while oil prices continued to rise. Japan's Nikkei 225 dropped 2.8 percent, South Korea's Kospi lost 2.3 percent, Hong Kong's Hang Seng fell 0.8 percent, China's Shanghai Composite declined 1.8 percent, and Australia's S and P/ASX 200 fell 1.2 percent. Higher energy prices have also added to inflationary pressures. US producer prices rose 5.4 percent year-on-year in August, accelerating from 4.8 percent in July, while US Treasury yields have remained above pre-war levels amid concerns over energy prices, inflation, and rising government debt. Diplomatic efforts are expected to focus on keeping energy shipping routes open, with Iran and Gulf states anticipated to meet on Monday in Oman to discuss a temporary arrangement for managing shipping through the Strait of Hormuz. Meanwhile, Yemen's western coast has seen rapid military developments, with media reporting Houthi advances on several fronts towards areas near Mocha and the Bab al-Mandeb Strait. With disruptions affecting production, the Red Sea, and the Strait of Hormuz, the US-Iran war is increasingly placing pressure on the global oil sector, with continued fighting and shipping risks keeping crude prices elevated.