Hormuz closure chokes Iraq’s oil lifeline as fields halt, losses mount
Shafaq News- Baghdad
Iraq’s export engine began to stall on Wednesday as the closure of the Strait of Hormuz halted crude shipments, forced major oil fields offline and sent daily losses soaring past $128 million, according to industry and government sources.
Production at the Rumaila oil field -Iraq’s largest and the world’s second-largest- has stopped after storage tanks filled and tankers were unable to load, local sources said. Exports from the Kurdistan Region through Turkiuye’s Ceyhan port have also ceased after companies suspended operations, while officials at North Oil Company confirmed further disruptions.
Two Iraqi oil officials told Reuters the country may have to cut more than 3 million barrels per day within days if vessels cannot transit Hormuz. Analysts at JPMorgan warned regional supply losses could deepen sharply if the blockage persists.
The Strait of Hormuz carries roughly a fifth of global oil and liquefied natural gas flows. Iran’s Revolutionary Guard Corps (IRGC) declared it has “full control” over the chokepoint, while ship-tracking services showed dozens of tankers idling on both sides. US President Donald Trump said the US Navy could escort oil tankers if needed.
Iraqi port authorities denied claims that Umm Qasr had emptied of ships. Mohammed Taher, director of Umm Qasr South, said vessels from Dubai, Saudi Arabia, and Qatar continue to arrive, though direct Asian routes have stalled. Around 10–11 ships remain inside the port, with container throughput steady at 1,800–2,000 units daily. China’s COSCO Shipping Lines has suspended new bookings to and from several Middle East ports, including Iraq.
The Oil Ministry said refineries nationwide are operating at full capacity and domestic fuel supplies remain sufficient, with surplus stocks in storage. Temporary customs measures were introduced to speed cargo clearance and prevent congestion.
Prime Ministerial adviser Mudhhir Mohammed Salih said Iraq’s foreign reserves cover more than a year of imports, providing a buffer to stabilize the dinar and finance trade through alternative routes. Limited overland transport could offset 10–15% of export flows, he added.
