Oil production in southern Iraq's fields has dropped by up to 80%, according to a report by Mada Al-Rafidain News, coinciding with crude storage tanks reaching maximum capacity and halted export operations via the Strait of Hormuz. This severe decline affects major strategic fields such as Rumaila and Majnoon, dealing a harsh blow to the energy sector.
This near-total halt is directly attributed to the ongoing geopolitical tensions in the region, which have severely restricted oil tanker movements. Iraqi crude inventories have hit critical levels, demanding urgent logistical solutions to avoid a complete shutdown of oil wells.
This situation places unprecedented pressure on the federal government's financial revenues, which rely on oil for over 90% of budget funding, signaling imminent economic challenges if exports are not swiftly resumed.
