Analyst: Middle East oil well restart faces technical challenges, with low risk of large-scale permanent damage

With the resumption of navigation in the Strait of Hormuz, countries such as Iran, Saudi Arabia, the United Arab Emirates, and Iraq have suspended oil wells in preparation for resuming production. Vikas Dwivedi, Global Oil and Gas Strategist at Macquarie Group, stated that there is uncertainty regarding the actual performance of oil wells after restart. In response to US President Trump's warning that production shutdowns could lead to oil field explosions and permanent damage, Natasha Kaneva, head of global commodity strategy at JPMorgan, stated that the associated risks have been exaggerated. In history, there have been no significant long-term production capacity losses in Middle Eastern oil producing countries. The process of resuming production requires the restoration of underground pressure balance through methods such as water and gas injection. The possibility of large-scale infrastructure damage or permanent production capacity loss is relatively low.