Iraqi Oil Crisis: Production Plummets Amid Strait of Hormuz Closure

Iraq's oil production from key southern oilfields has plummeted by 70% to 1.3 million barrels per day. This drastic fall has been attributed to the inability to export oil via the strategic Strait of Hormuz due to ongoing conflict in the region.

The Basra Oil Company, responsible for managing production, has diverted remaining output to domestic refineries as crude storage capacities have been maxed out. The Strait of Hormuz remains a crucial corridor for global oil transit, handling a significant portion of the world's oil and liquefied natural gas flows.

Iraq's oil exports averaged 800,000 barrels per day, a sharp decline exacerbated by limited tanker access to southern terminals. With the ceasing of new tanker arrivals, export operations are expected to come to a standstill, straining the OPEC member's economy, which heavily relies on oil revenue.