Sharp Drop in Iraq’s Oil Output Amid Storage Limits and Export Disruptions

Iraqi energy officials said on Wednesday that oil production has sharply declined due to the ongoing war in Iran, which has disrupted exports through the Strait of Hormuz and pushed storage levels to critical limits.

According to Reuters, production from major southern oil fields dropped by about 80%, reaching around 800,000 barrels per day.

A document from Basra Oil Company also showed directives to cut output at the Rumaila field due to high storage levels.

Production at North Rumaila was reduced to 350,000 barrels per day starting March 24, 2026.