Iraq oil production plunges 60% amid Hormuz disruptions

Shafaq News- Baghdad

Iraq’s oil production has dropped nearly 60% as the conflict involving the United States, Israel, and Iran slows tanker movements and disrupts exports through the strategic Strait of Hormuz, Bloomberg reported on Sunday.

Sources cited by the agency put current output at 1.7 to 1.8 million barrels per day, down from about 4.3 million barrels before the fighting intensified. “The decline reflects growing logistical pressure in the Arabian Gulf, where fewer tankers can load crude,’’ they added, stressing that storage facilities are filling fast, forcing producers to cut production.

Iraq is the first major Gulf producer to reduce oil supply due to the conflict. The United Arab Emirates and Kuwait have followed as regional disruptions spread.

The Strait of Hormuz, a critical shipping lane that handles roughly 20% of global oil exports, continues to face major interruptions. With tanker access limited, Gulf producers are increasingly storing oil, though available capacity is running low, according to Bloomberg.

Read more: Iraq braces for financial meltdown amid Hormuz closing threats