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Israel-US vs Iran War Live Updates: Iraqi Oil Exports at Risk as Strait of Hormuz Bottlenecks Push Storage to Critical Levels

Iraq could be forced to cut more than 3 million barrels per day (bpd) of oil production within days if tankers are unable to move freely through the Strait of Hormuz, according to Iraqi oil officials cited by Reuters. The warning underscores the deepening impact of the Middle East war escalation on global oil supply chains amid rising US-Iran-Israel tensions.

As of Tuesday, Iraq has already reduced output at the Rumaila oil field by approximately 700,000 bpd and cut another 460,000 bpd from the West Qurna 2 field. These preemptive reductions reflect mounting pressure on export infrastructure as Gulf shipping disruptions continue to slow crude movements.

Officials said export bottlenecks linked to reduced tanker traffic through the Hormuz maritime corridor have pushed storage capacity at Iraq’s southern loading ports to critical levels. The Strait of Hormuz is a vital chokepoint handling a significant share of the world’s energy transit flows, making any disruption a major concern for the international oil market.

Energy analysts warn that sustained constraints on Iraqi exports could further tighten global crude markets, drive price volatility, and intensify the broader geopolitical energy crisis triggered by the ongoing conflict in the Middle East.