Page 16: of Offshore Engineer Magazine (Mar/Apr 2026)

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MARKETS RIGS © Jan / Adobe Stock

MIDDLE EAST CONFLICT JOLTS

OFFSHORE DRILLING MARKET

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.

By Matthew Donovan, Head of Rig Market Research at Esgian 16 OFFSHORE ENGINEER OEDIGITAL.COM