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Iraq eyes swift return to pre-war oil production levels
20 Jun
Summary
- Iraq anticipates oil production rebound within two months.
- Strait of Hormuz blockade eased by a US-Iran deal.
- Crude exports vital for Iraq's economy are resuming.
Iraq anticipates a swift return to its pre-war oil production capacity within one to two months. This optimistic outlook follows a recent deal between the United States and Iran, which has led to the easing of the blockade on the Strait of Hormuz. The conflict had previously caused a severe reduction in Iraq's oil exports.
According to the Iraqi oil ministry's spokesman, fields that had lowered their production are now actively increasing their output. Prior to the war, Iraq exported approximately 3.5 million barrels of oil daily, with a significant portion passing through the Strait of Hormuz. The conflict forced the nation to halt production in most of its oil fields.
As the vital strait begins to reopen, Iraqi crude exports via this route are expected to gradually increase. This recovery is critically important for Iraq's economy, as crude exports normally represent about 90 percent of the country's total revenue.
