Iraq oil production falls 70% to 1.3M bpd as Hormuz war blocks exports. Basra storage full after two tankers; 90% national income vanishes.
Basra Oil Company Halts Exports After Two Tankers Load - Iraq Faces Worst Crisis in 20 Years (Image: File)
Iraq's vital southern oilfields have slashed production by 70% to just 1.3 million barrels per day, with storage tanks at Basra terminals now completely full and export operations grinding to a halt after only two tankers loaded amid the Iran war's Strait of Hormuz blockade. The country that pumped 4.3 million barrels daily before the conflict now watches its economic lifeline vanish, as the global chokepoint carrying one-fifth of world oil flows remains sealed shut.
Three industry sources confirmed Sunday that southern fields—managed by the state-run Basra Oil Company—dropped from 4.3 million bpd to 1.3 million as Hormuz closure prevented tanker access. "Crude storage has reached maximum capacity," a BOC official stated, with remaining output diverted solely to domestic refineries. February exports averaged 3.334 million bpd; Sunday saw just 800,000 bpd loaded across two vessels.
Cospearl Lake and Yuan Hua Hu each loaded roughly 2 million barrels around 8 p.m. local time at southern terminals before the Strait blockade ended further loading. With no new vessels arriving, export terminals shut down completely, three oil officials and a shipping agent confirmed to Reuters. Iraq's oil-dependent economy now bleeds without revenue from its primary income source.
The 21-mile-wide Strait carries one-fifth of global oil and LNG flows, making it untouchable during active conflict. Iraq's southern terminals cannot dispatch tankers without risking Iranian interception, leaving crude trapped onshore. Iraq, an OPEC member, depends on oil sales for more than 90% of its national income and almost all of its public spending, which turns functional stagnation into a financial disaster.
"This is the most serious operational threat Iraq has faced in more than 20 years," warned a senior oil ministry official. Government salaries, reconstruction, security forces—all hinge on crude cash that suddenly evaporated. Full storage means production cuts deepen daily, with refineries claiming whatever flows while export markets starve.
A: 4.3 million barrels per day from southern fields; now down 70% to 1.3 million bpd.
A: Cospearl Lake and Yuan Hua Hu, each taking ~2M barrels around 8pm local time Sunday.
A: Over 90% of national income; nearly 100% of public spending relies on crude revenue.
A: Strait of Hormuz carries 1/5 global oil; no viable bypass exists during active conflict.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
