Conflict between Iran, the United States, Israel and allies throughout the Gulf region has had an immediate effect on the oil and gas industry, both upstream and downstream…
Conflict between Iran, the United States, Israel and allies throughout the Gulf region has had an immediate effect on the oil and gas industry, both upstream and downstream. Drone and missile attacks have damaged refineries and as of mid-April 2026, blockades in the Strait of Hormuz have severely restricted the flow of oil into the global market.
The war has also affected drilling in the area. The Middle East houses 177 of the world’s 495 jack-ups and drilling by national oil companies in Saudi Arabia, the UAE and other countries in the areas makes it the largest market for these rigs.
© Esgian
Jack-up Suspensions Weigh on Near-Term Activity
After Iran was hit with missiles in late February and Iran began responding with strikes in the UAE, Qatar and Saudi Arabia, a number of jack-ups were manned down and some drilling activity was halted due to safety concerns, particularly in Qatar.
As of mid-April, a significant number of these rigs have returned to work. However, Saudi Aramco, the largest operator in terms of jack-ups under contract, has been issuing notices of temporary suspension, affecting jack-ups managed by ADES, Arabian Drilling and other contractors.
© Esgian
Market sources
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