Iran Closes Oil Wells in Flood-hit Khuzestan amid Drop in Output

FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
TT
20

Iran Closes Oil Wells in Flood-hit Khuzestan amid Drop in Output

FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS

Iran has shut around a dozen oil wells in the southwestern Khuzestan province because of massive floods, the semi-official Mehr news agency reported on Wednesday, leading to a drop of up to 20,000 barrels per day in crude production.

Iran's worst flooding in 70 years, which started on March 19, has killed at least 76 people, forced more than 220,000 into emergency shelters and caused an estimated $2.5 billion in damage to roads, bridges, homes and farmland, Reuters reported.

"There are no oil leaks at the Hoor al-Azim wetland area. We have closed 10 to 12 oil wells there as a precautionary measure to prevent any environmental damages," Reuters quoted Touraj Dehghani, the head of Iran's Petroleum Engineering and Development Company (PEDEC), as telling the media.

"The oil production of the field has dropped between 15,000 to 20,000 barrels per day."

Iranian media on Friday reported oil output had been reduced in Khuzestan, home to the Azadegan and Yadavaran oilfields.

Iranian authorities have said the floods have not affected crude exports.

The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers. The sanctions have already halved Iranian oil exports.

US President Donald Trump eventually aims to halt Iranian oil exports, choking off Tehran's main source of revenue.

Washington is pressuring Iran to curtail its nuclear program and stop backing militant groups across the Middle East.



Saudi Arabia: Non-Oil Activities Make up 49.7% of Revenue

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
TT
20

Saudi Arabia: Non-Oil Activities Make up 49.7% of Revenue

A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia. (Asharq Al-Awsat)

Saudi Arabia’s non-oil revenues grew 7% in the second quarter of 2025, reaching 149.86 billion riyals ($39.9 billion), up from 140.60 billion riyals ($39.5 billion) a year earlier, government data showed on Thursday.

Non-oil income accounted for 49.7% of total revenues during the quarter, highlighting continued efforts to diversify the economy away from hydrocarbons.

Overall revenues reached 301.60 billion riyals ($80.4 billion), while expenditures amounted to 336.13 billion riyals ($89.6 billion), resulting in a quarterly budget deficit of 34.53 billion riyals ($9.2 billion).

Oil revenues fell sharply by 29% year-on-year to 151.7 billion riyals in Q2.

Tax revenues posted broad-based gains. Income, profit, and capital gains taxes rose 7% to 13.73 billion riyals. Taxes on goods and services also climbed 7%, reaching 74.95 billion riyals.

Trade and international transaction taxes jumped 16% to 6.32 billion riyals, while other taxes increased 6% to 25.99 billion riyals. Miscellaneous non-tax revenues grew 4% to 28.87 billion riyals.

Government spending in the second quarter declined 9% from a year ago, falling to 336.13 billion riyals from 368.93 billion riyals.

In the first half of 2025, Saudi Arabia posted revenues of 565.21 billion riyals ($150.7 billion) and expenditures of 658.45 billion riyals ($175.5 billion), leaving a fiscal shortfall of 93.24 billion riyals ($24.8 billion).

Non-oil revenues during the six-month period stood at 263.67 billion riyals, while oil revenues totaled 301.54 billion riyals.

Spending during the first half declined 2% compared with the same period last year, when it reached 674.75 billion riyals.

Meanwhile, the Kingdom’s general reserve rose to 396.95 billion riyals by the end of H1 2025, and the current account held 102.59 billion riyals.

Saudi Arabia’s public debt climbed to nearly 1.39 trillion riyals by mid-2025, including 871.30 billion riyals in domestic debt and 515.14 billion riyals in external borrowing.