Iraq, the second-largest producer within OPEC, has reportedly suspended nearly all oil production due to the intensifying conflict in the Middle East. According to the Financial Times, the nation, which previously pumped approximately 3 million barrels per day, has been forced to a standstill.
The production halt is attributed to the closure of the Strait of Hormuz by Iran, leading to a complete saturation of storage facilities and severe threats to maritime navigation. Without a viable export route, Iraqi infrastructure has reached its maximum holding capacity.
The move is expected to have significant geopolitical and economic ripples, as China and India historically account for nearly two-thirds of Iraq’s oil exports. Global markets are now bracing for the impact of this massive supply disruption.
