Iraq cuts Basra oil output by 70% amid regional escalation

By Jomaa Younis

ISTANBUL (AA) – Iraq has cut oil production in the Basra fields by about 70%, reducing output from 3.3 million barrels per day to around 900,000, following the suspension of crude exports from southern ports, the state news agency reported Friday.

Deputy Oil Minister Hayyan Abdul Ghani said during a meeting with officials from the Basra Oil Company that production had been sharply reduced after exports were halted, according to the Iraqi News Agency (INA).

He added that the crude currently being produced is being directed to operate domestic refineries.

Oil prices rose amid the escalating regional tensions, with Brent crude climbing about 4% to $112.4 per barrel, while West Texas Intermediate reached $98.35, up 2.8%.

On Wednesday, Iraq’s North Oil Company announced the resumption of oil exports through the Turkish port of Ceyhan, after shipments had been suspended since 2023.

The move comes as Baghdad seeks alternative export routes amid mounting risks to shipping in the Strait of Hormuz.

The conflict involving Iran has disrupted maritime traffic through the strategic waterway, with reports of hundreds of vessels stranded on both sides of the strait due to growing security concerns.

On March 2, Iran announced restrictions on navigation in the Strait of Hormuz and warned it could target vessels attempting to cross the waterway without coordination.

Around 20 million barrels of oil per day normally pass through the strait, and the disruption has pushed up shipping and insurance costs while fueling concerns over global energy markets.

Regional tensions have escalated since the US and Israel launched a joint offensive on Iran on Feb. 28, killing so far some 1,300 people, including then-Supreme Leader Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.

*Writing by Tarek Chouiref