Iraq Shuts Major Oil Fields as Hormuz Tensions Disrupt Tanker Traffic

Iraq has initiated production shutdowns at its primary southern oil fields, including the massive Rumaila field, in response to escalating regional instability. The closure of the West Qurna 2 field alone has resulted in a production loss of approximately 460,000 barrels per day. These operational halts are driven by significant disruptions to tanker traffic through the Strait of Hormuz, a critical maritime chokepoint. With export routes hampered, onshore storage facilities in Iraq have reached critical capacity, forcing operators to curtail output immediately. As the second-largest producer in OPEC, Iraq's supply reduction is expected to exert significant bullish pressure on Brent and WTI crude prices. Market participants remain on high alert as the combination of field shutdowns and shipping constraints creates a substantial supply shock to global energy markets.