Analyst: Technical challenges lie ahead for restarting oil wells in the Middle East, with a low risk of large-scale permanent damage.

With the Strait of Hormuz reopening to navigation, some oil wells in Iran, Saudi Arabia, the United Arab Emirates (UAE), Iraq and other countries that were shut down during the conflict are gradually preparing to resume production. The market is closely watching whether these wells can smoothly restore production capacity after prolonged shutdowns and whether permanent damage will occur. Analysts note that both the shutdown and restart of oil wells involve complex engineering operations. Prolonged well shutdowns may lead to issues such as underground pressure changes, equipment corrosion and reduced production capacity, but the industry has mature experience in dealing with these problems. Vikas Dwivedi, global oil and gas strategist at Macquarie Group, said there remains uncertainty about the actual performance of the wells after restart. In response to U.S. President Donald Trump’s earlier warning that shutdowns could lead to oilfield "explosions" and permanent damage, Natasha Kaneva, head of global commodities strategy at JPMorgan, said the relevant risks are likely overstated. Historically, whether during the large-scale well shutdowns amid the 2020 pandemic or OPEC production cuts, Middle Eastern oil-producing countries have not seen significant long-term production capacity losses. Analysts believe that although the production resumption process requires gradually restoring underground pressure balance through methods such as water and gas injection, and coordinating the synchronized operations of multiple oilfields in the region, the possibility of large-scale infrastructure damage or permanent production capacity loss remains low.