Middle East war: TotalEnergies shuts 15% of gas, oil production
TotalEnergies Reduces Oil and Gas Output by 15% Amid Middle East Conflict
TotalEnergies announced Thursday that it has suspended 15 percent of its total oil and gas production due to ongoing military conflicts in the Middle East.
The French oil and gas company reported that operations have been halted or are in the process of shutting down in Qatar, Iraq, and offshore from the United Arab Emirates. This reduction represents a significant adjustment to the company’s output levels amid geopolitical tensions.
Despite the production slump, TotalEnergies indicated that rising oil prices are expected to offset potential revenue losses from its Middle Eastern assets. The company stated, “A $8 per barrel increase in the Brent price is enough to compensate for the expected 2026 cash flow from operations from our Iraq, Qatar, and UAE offshore assets at $60 per barrel.”
Brent North Sea crude, the global benchmark oil contract, began the year at approximately $60 per barrel but surged above $100 per barrel on Thursday, marking an increase of nearly two-thirds. The price has risen about 38 percent since the onset of conflict, which escalated on February 28 when the United States and Israel initiated airstrikes against Iran.
In response, Iran has conducted retaliatory attacks on vessels and neighboring Gulf countries, significantly disrupting maritime traffic through the Strait of Hormuz—an essential corridor for approximately one-fifth of the world’s oil and liquefied natural gas.
TotalEnergies ranks as the world’s third-largest liquefied natural gas (LNG) producer and is also engaged in oil production and renewable energy initiatives.
This development underscores the profound impact of geopolitical factors on global energy markets.
