Sources: Strait of Hormuz transit blocked, Iraq's oil production drops by 70%

Three industry sources said on Sunday that due to the Iran war preventing Iraq from exporting oil through the Strait of Hormuz, oil production in Iraq’s southern major oil fields has dropped by 70%, down to only 1.3 million barrels per day. Before the conflict, these oil fields produced about 4.3 million barrels daily. An official from the state-owned Basra Oil Company (BOC), responsible for production and export of southern oil fields, stated, “Crude oil storage has reached its limit, and the remaining output after significant reduction will be used to supply domestic refineries.” The sources also noted that because oil tankers cannot freely pass through the Strait of Hormuz to reach Iraq’s southern terminals, only two oil tankers are loading crude oil, causing Iraq’s Sunday exports to plummet to an average of about 800,000 barrels per day. According to a document from Iraq’s Ministry of Oil, the country’s southern oil exports in February were 3.334 million barrels per day. A senior official from Iraq’s Ministry of Oil said, “This is the most serious operational threat Iraq has faced in over 20 years.” (Sina Finance)