Exclusive-Saudi Aramco reducing output at two oilfields, two sources say

Group 1 - Saudi oil giant Aramco has started cutting output at two of its oilfields due to logistical challenges caused by the U.S.-Israeli conflict with Iran [1][2] - The Strait of Hormuz, a critical oil transit chokepoint, has been severely affected, leading to production cuts from several neighboring countries [2][3] - Kuwait Petroleum Corporation and Qatar have declared force majeure on shipments, while Iraq's oil production has dropped by about 70% due to storage limits [3] Group 2 - The disruptions have caused Brent crude futures to rise to nearly $120 a barrel, the highest since mid-2022 [4] - Despite Saudi Arabia's efforts to reroute crude shipments to the Red Sea, the redirected volumes are insufficient to compensate for the production losses caused by the Gulf closure [4] - Consumers and businesses worldwide may face prolonged periods of high fuel prices due to damaged infrastructure and logistics challenges, even if hostilities cease quickly [5]