Iraq has announced a reduction in crude oil production following Iran’s closure of the Strait of Hormuz, a move that has disrupted Iraqi oil export operations. According to Iraqi officials, production has been scaled back across key oil fields, including a 700,000 barrels per day (b/d) cut at Rumaila, 460,000 b/d at West Qurna 2, and 325,000 b/d at Maysan.
The Iraqi oil ministry stated that while crude production has been reduced due to export constraints and rising storage levels, the decision will not affect domestic refinery operations. Authorities explained that the shutdown of export routes, coupled with escalating military activity in the region, led to storage facilities reaching capacity, necessitating the temporary production cuts.
The Strait of Hormuz has remained closed for a fourth consecutive day after reported attacks on vessels, further intensifying global energy market concerns. The waterway is a critical transit route for roughly 20% of global oil and liquefied natural gas (LNG) supplies. The ongoing conflict has disrupted energy exports across parts of the Middle East, with production shutdowns reported from several countries, including Qatar and Iraq, amid continued regional hostilities.