Oil production at the major oil fields in southern Iraq has fallen by about 70%, dropping to 1.3 million barrels per day (bpd), as the country is unable to export crude oil through the Strait of Hormuz due to aerial military operations against Iran, three sources from Iraq’s oil industry told Reuters.

Before the start of the operations, production at the same oil fields stood at around 4.3 million barrels per day.

Iraq’s Foreign Minister, Fuad Hussein, warned during a meeting of the Arab League that the situation could trigger multiple simultaneous crises, noting that the closure of the maritime route has a direct impact on the interests of Iraq, the region, and the global economy.

He said the consequences could include disruptions to energy supply and prices, widespread armed unrest in the region, and mass displacement of populations.

At the same time, other major producers in the region are also being affected, with the United Arab Emirates and Kuwait beginning to reduce their production, as the effective closure of the Strait of Hormuz is impacting the global energy supply.

Source: CNA