Analysts: Restarting Middle Eastern oil wells faces technical challenges, but the risk of large-scale permanent damage is low.

According to Mars Finance, on June 24, with the reopening of the Strait of Hormuz, some oil wells in Iran, Saudi Arabia, the UAE, and Iraq, which had ceased production during the conflicts, are gradually preparing to resume operations. The market is focused on whether the wells can successfully restore production capacity after long-term shutdowns and whether permanent damage will occur. Analysts point out that both well shutdowns and restarts involve complex engineering operations, and long-term shutdowns can lead to problems such as changes in underground pressure, equipment corrosion, and reduced production capacity, but the industry has mature experience in dealing with these issues. Vikas Dwivedi, global oil and gas strategist at Macquarie Group, stated that the actual performance of the restarted wells remains uncertain. Regarding US President Trump's previous warnings that shutdowns could lead to oil fields "exploding" and permanent damage, Natasha Kaneva, global head of commodities strategy at JPMorgan Chase, stated that the risks are likely exaggerated. Historically, neither the large-scale well shutdowns during the 2020 pandemic nor OPEC's production cuts have resulted in significant long-term production losses for Middle Eastern oil-producing countries. Analysis suggests that although the resumption of production requires gradually restoring underground pressure balance through methods such as water and gas injection, and coordinating the simultaneous operation of multiple oilfields in the region, the possibility of large-scale infrastructure damage or permanent loss of production capacity is low.