Iraq's Oil Crisis: Strait of Hormuz Disruptions Threaten Major Production Cuts

Iraq is on the brink of significantly cutting oil production by over 3 million barrels per day, should oil tankers remain stalled in the Strait of Hormuz, leading to blocked access to loading ports, according to two Iraqi oil officials who spoke to Reuters on Tuesday.

The officials disclosed that as of Tuesday, production at the Rumaila oil field has already been reduced by 700,000 barrels per day, and the West Qurna 2 field has seen a drop of 460,000 barrels per day in production.

The disruption in oil exports via the Strait of Hormuz has escalated, pushing storage facilities in Iraq’s southern ports to critical capacity levels, the officials stressed.