Iraq Halts Oil Exports via Strait of Hormuz

Iraq's oil production from its main southern oilfields has plummeted by 70% to 1.3 million barrels per day, down from 4.3 million bpd, due to the inability to export oil via the Strait of Hormuz. This critical waterway has become inaccessible because of the ongoing Iran war. Crude storage facilities managed by Basra Oil Company have reached maximum capacity, forcing the drastic production cuts, with remaining output now solely supplying domestic refineries. Exports from Iraq's southern terminals have effectively halted, with only two tankers, Cospearl Lake and Yuan Hua Hu, completing loading before the cessation of new vessel arrivals. This situation poses the most serious operational threat to Iraq's oil sector in over two decades, severely straining the nation's finances as oil sales constitute over 90% of its income.