Iran, Ukraine wars deliver worst hit in years to oil refining output

OPEC and industry reports say the combined effects of the Iran and Ukraine wars have dealt the largest hit to global oil refining output in years, with multiple refinery outages, targeted strikes and supply‑chain disruptions reducing refined fuel availability and forcing large import shifts.

Refining knock‑on effects include higher diesel and jet‑fuel prices in import‑dependent regions, rising import needs for countries such as Ukraine and parts of Europe after domestic refinery capacity was damaged, and tighter product markets in the Middle East and Mediterranean where facilities and export terminals were directly affected.

Market consequences have been broad: benchmark crude prices have faced upward pressure at times because of supply‑risk premia from the Middle East, while refined‑product spreads widened as cracked‑product availability fell; meanwhile, coordinated releases from strategic reserves and rerouting of shipments have helped blunt some immediate shortages but not fully replace lost refining throughput.