Sharp Decline in Iraq’s Oil Output Amidwar on Iran

Oil production in Iraq has fallen sharply following the recent military escalation in the region, with output declining to around 1.3 million barrels per day, compared with approximately 3.3 million barrels per day before the tensions intensified, according to officials.

Kazem Abdul Hassan Karim, Assistant Director-General of the Petroleum Contracts and Licensing Directorate (PCLD) at the Iraqi Ministry of Oil, said in a statement on Sunday that the decline reflects precautionary measures taken by the ministry amid the evolving regional situation.

Despite the sharp reduction in production, Karim noted that key export terminals in the southern city of Basra remain fully operational. 

Facilities including Umm Qasr Port and the Basra Oil Terminal continue to handle crude shipments normally. He explained that export volumes currently depend largely on the availability and scheduling of oil tankers, indicating that logistical factors are also influencing shipment levels. Karim said that oil production has now stabilised at approximately 1.3 million barrels per day in line with directives issued by the ministry, significantly lower than the roughly 3.3 million barrels per day produced prior to the latest regional tensions.

The official also revealed that a drone attack involving two unmanned aircraft targeted the Burjesia oil field area southwest of Basra, raising security concerns around energy infrastructure. However, he stressed that the incident did not directly affect oil production facilities or operational fields.

According to Karim, the attack caused material damage to storage facilities belonging to a foreign logistics services company operating in the area, but Iraq’s core oil installations remained intact and production activities continued without disruption.

Authorities are closely monitoring the security situation around major oil assets, particularly in southern Iraq where a large portion of the country’s crude production and exports are concentrated. The government has also stepped up protective measures around strategic infrastructure to prevent further incidents.

Iraq, one of the leading producers within OPEC, relies heavily on oil exports as the main source of government revenue. Analysts say any prolonged disruption to production or export operations could have significant implications for both the national economy and global oil markets, especially at a time of heightened geopolitical tensions in the Middle East.