Westwood Insight – Middle East conflict reverberates through jackup market in Oil & Companies News 14/05/2026 After a cautiously optimistic start to 2026 for Middle East offshore markets, escalating regional conflict has rapidly altered the outlook. Expectations of steady tendering activity and tightening jackup supply have been undercut by operational disruption, delayed contract commencements and rising political risk across the Arabian Gulf. As uncertainty spreads, rig utilisation has softened and previously bullish forecasts are being reassessed, highlighting how quickly geopolitical events can reshape market fundamentals. Originally published by Riviera Maritime Media on 12 May 2026. In January 2026, Westwood’s RigLogix forecast that the global jackup market would begin its long‑anticipated recovery from mid‑to-late‑2026, following a difficult period stretching back to 2024. That optimism was underpinned by strengthening demand from the world’s most active jackup basin – the Arabian Gulf – which alone accounts for around 36% of global jackup supply. As 2026 progressed, the early signals appeared encouraging. Tendering momentum accelerated across the Arabian Gulf in late 2025 and into early 2026, a growing number of developments moved closer to final investment decision, and high‑impact exploration successes – particularly offshore Kuwait – reinforced longer‑term activity visibility. Several jackups suspended during earlier market dislocations were expected to return to work with Saudi Aramco, while many others were already absorbed into new contracts elsewhere around the globe. Taken together, the narrative was broadly constructive. Early‑2026 optimism gives way to regional instability However, that trajectory has since been disrupted by the escalation of conflict in the Middle East beginning in February 2026. Missile strikes, drone activity and naval incidents across the region have materially altered the operating environment. Offshore operators have resp