Iraq Oil Output Plunges 70% as Gulf Shipping Crisis Paralyzes Exports

Crude oil production from Iraq’s southern fields has collapsed by 70%, dropping from 4.3 million barrels per day (bpd) to just 1.3 million bpd. The Basra Oil Company confirmed that storage facilities have reached maximum capacity, forcing the diversion of all remaining output to domestic refineries. This massive production halt is a direct consequence of the deepening shipping crisis in the Gulf, fueled by the ongoing conflict involving the U.S., Israel, and Iran. The removal of approximately 3 million bpd from the global market represents one of the most significant supply shocks in recent energy history. Market analysts expect this disruption at a critical maritime transit point to trigger a substantial spike in global oil prices, specifically affecting Brent and WTI benchmarks. As a key OPEC producer faces operational paralysis, the global energy sector is bracing for heightened volatility and potential supply shortages.