Iraqi oil production collapses with Strait of Hormuz blocked by conflict, sources say

[BumRushDaShow]

Source: Reuters

March 8, 2026 12:56 PM EDT Updated 45 mins ago


BAGHDAD, March 8 (Reuters) - Iraqi oil ‌production from its main southern oilfields has fallen by 70% to just 1.3 million barrels per day as the country is unable to export oil via the Strait of Hormuz due to ​the Iran war, three industry sources said on Sunday. Production from the fields ​stood at around 4.3 million bpd before the war.

"Crude storage has ⁠reached maximum capacity and the remaining output after the major cut will be ​used to supply the country’s refineries," said an official with the state‑run Basra Oil ​Company (BOC), which manages production and export operations from the southern fields.

The Strait of Hormuz, a narrow, strategically vital waterway between the Persian Gulf and the Gulf of Oman, is one of the ​world's key oil transit chokepoints, carrying roughly a fifth of global oil and ​liquefied natural gas flows.

The OPEC member's exports also fell sharply to an average of around 800,000 ‌barrels ⁠per day on Sunday, with only two tankers loading because vessels cannot move freely through the strait to Iraq's southern terminals, the source said. With no new tankers able to reach Iraq’s southern terminals, exports from there are expected to halt completely ​at around 8 p.m. ​local time (1700 GMT), ⁠said two oil officials with direct knowledge of terminal operations.

Read more: https://www.reuters.com/business/energy/iraqi-oil-production-collapses-with-strait-hormuz-blocked-by-conflict-sources-2026-03-08/

[pat_k]

1. Tantrum warning as the felon's "solutions" fall flat.

His desperate offers of navy escorts (for which we don't have near the capacity required to restore normal traffic) and 20 billion in reinsurance (when analysts estimate more like 300 billion in commitments would be needed -- a number that is beyond the maximum DFC could commit without congressional approval) aren't making a dent

And he will get very, very, very bent out of shape that they aren't running to kiss his feet for his largesse.

He actually believed he could just snap his figures and oil and LG would be flowing again.

Que truth social insane rants.

[MarineCombatEngineer]

2. So MAGAT's, tell us again how Trumpedo is making the country better?

I'll wait......and wait...........and.................

[generalbetrayus]

3. I guess I'll be riding the bus into the office for a while. Hey, it's good for the environment, too.

[dixiegrrrrl]

4. Iraqi oil sales more than 80% of its income. n/t

[Crowman2009]

5. Of course how much of that goes to the Iraqi people anyway?

I have a feeling a great majority of them are pissed off about the orange assclown starting a war against their now neighbor.

[EX500rider]

6. It finances their government

Oil revenue accounts for approximately 90% to over 93% of the Iraqi government's total budget, according to 2025-2026 data

[EX500rider]

8. Maybe but Iran is not real popular in Iraq

Public Sentiment: A 2019 poll showed only 16% of Iraqis had a favorable view of Iran

[EX500rider]

7. Seems rather shortsighted of the Iraqi's not to have alternate route for their oil..

....that doesn't require the good will of Iran.

A pipeline thru Saudi to the Red Sea or one thru Turkey to the Med would have been a good investment.
From Mosul to the Turkish coast is only 400 miles or so.
From Basrah to the Red Sea about 700m.

[BumRushDaShow]

9. "A pipeline thru Saudi to the Red Sea or one thru Turkey to the Med"

But look what happened to Nord Stream II.

[EX500rider]

10. Diversifying their distribution would have been a better idea then what they have now

[BumRushDaShow]

11. Past history has shown

that oil rarely becomes a target except by "unknowns" in the country that hosts the fields (including those intent on disrupting the supply for financial gain).

I expect there may be some logistical issues too.