Oil market chaos to deepen as more Gulf giants cut output

The chaos that has gripped the oil market looks set to deepen, with more production getting cut as the war in Iran effectively shuts the Strait of Hormuz, and the US considers widening its range of targets in the country.

The United Arab Emirates and Kuwait have already started reducing oil production as storage runs out, joining Iraq, whose output is now down 60%. Others may be forced to follow as oil tankers continue avoiding the narrow waterway, rapidly reducing the number of empty ones available for loading.