Saudi Arabia’s finance minister has warned that restoring oil production capacity across the Gulf will take time following extensive infrastructure damage caused by recent regional conflict.

Speaking at a global economic forum, officials highlighted a “disconnect between paper markets and physical supply,” as oil prices fluctuated sharply despite the reopening of key shipping routes.

Although the Strait of Hormuz has partially reopened after a ceasefire, production facilities and export infrastructure remain under strain. This has slowed the region’s ability to ramp up output quickly.

Oil prices initially dropped by more than 10% following the reopening announcement, reflecting market optimism. However, analysts caution that actual supply recovery will lag due to logistical challenges and repair timelines.

For global markets, this creates continued uncertainty. Energy-importing countries may face volatility, while Gulf economies must balance production recovery with fiscal stability.

Looking ahead, Saudi Arabia is expected to accelerate investments in alternative export routes and energy infrastructure resilience to mitigate future disruptions.

Source : The National.