**[Escalation of U.S.-Iran Conflict Threatens Asian Refiners' August Production Plans, Global Fuel Supply Crisis Looms]** BlockBeats News, July 25 — According to a recent Reuters report, the escalating military conflict between the United States and Iran is threatening the already fragile recovery of global refining capacity, with Asian refiners bearing the brunt. Asian refiners, which were originally expected to drive a rebound in global fuel production this quarter, are now facing stagnation due to renewed disruptions in transportation through the Strait of Hormuz. Yemen's Houthi forces have threatened to block Saudi Arabia's crude oil exports via the Red Sea. According to research firm Energy Aspects, this could force over 3 million barrels per day of Saudi crude originally destined for Asia via the Bab-el-Mandeb Strait to be rerouted along longer shipping routes. On Tuesday, three Saudi oil tankers originally bound for China and India have already turned toward the Suez Canal. As a result, Asian refiners, who had already secured crude oil supplies for August, are now facing delivery delays from Middle Eastern sources. Meanwhile, refineries in the U.S. and Europe are operating near full capacity, leaving little room for production increases. Lin Keh-chang, President of Formosa Petrochemical Corporation (FPCC), stated that the company had planned to increase its operating rate to 480,000 barrels per day (nearly 90% capacity) in August. Although crude oil shipments for August have been secured, the renewed Middle East conflict has introduced uncertainties regarding the delivery and arrival times of some shipments. A senior executive from a Chinese refining company, who wished to remain anonymous, also noted that shipments scheduled for July and August are expected to face delays, making production increases challenging. Another pressure point on supply comes from Russia, where its refining facilities continue to suffer from Ukrainian drone attacks, leading to domestic fuel shortages. Moscow has been forced to restrict diesel exports to curb soaring domestic prices. The combination of these factors has pushed global refining margins to record highs. Refining margins in the U.S. and Europe have reached historic peaks, while Asian refining margins have climbed to a two-month high. According to Sparta Commodities analyst Neil Crosby, global refining capacity is insufficient to simultaneously cope with the dual shocks of a Strait of Hormuz closure and Russia's export restrictions, necessitating price hikes to suppress end-user demand. In the diesel and jet fuel sectors, Asian refining margins have surged to over $65 per barrel, compared to just over $20 per barrel before the conflict.