Iraq oil output drops nearly 60% amid US-Iran war

ISTANBUL

Iraq’s oil production has dropped by nearly 60% as the US-Israeli war on Iran entered its ninth day, according to an Iraqi official on Sunday.

Production currently stands at about 1.3 million barrels per day, down from around 3.3 million barrels before the outbreak of the war, Kazem Abdul Hassan Karim, assistant director general at the Department of Fields and Licensing Affairs in the Iraqi Oil Ministry, said in a statement.

A drone attack involving two unmanned aircraft targeted the Burjesia oil area southwest of Basra province in southern Iraq, causing material damage to warehouses belonging to a foreign logistics services company, Karim added.

He said the attack did not cause direct damage to oil facilities or production fields.

Iraq announced on Tuesday that it had reduced crude oil output after cutting exports due to the closure of the Strait of Hormuz.

Authorities in northern Iraq’s Kurdish region also said Friday that production had been halted at an oil field operated by HKN Energy in the Sarsang area of Duhok province following a drone attack.

Energy supplies from major producers, including Kuwait, Qatar, Iraq, and Saudi Arabia, have faced emergency measures in recent days, including production cuts, declarations of force majeure and disruptions to export routes due to continuing Iranian attacks.

Force majeure is a legal clause in energy contracts allowing suppliers to suspend contractual obligations -- such as delivering shipments -- without incurring financial penalties under extraordinary circumstances.

Regional escalation flared up since Israel and the US launched a joint attack on Iran on Feb. 28, killing more than 1,200 people, including Supreme Leader Ali Khamenei, and injuring over 10,000 others, according to Iranian authorities.

Tehran retaliated with missile and drone attacks targeting Israel, Iraq, Jordan and Gulf countries that are home to US military assets.

*Writing by Mohammad Sio