Iraq can restore oil production within 2 months

According to national news agency INA, Iraqi Oil Ministry spokesman Salim Farhoud said: “We can return to the old production level within 1-2 months. Oil fields that had to reduce capacity have begun to increase production again.”

The Middle East war that took place at the end of February caused Iran to block the Strait of Hormuz. This paralyzed oil transportation and forced many key producing countries, including Iraq, to ​​cut production, shaking the global energy market.

Iraq is one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC) and is the second largest producer in the bloc. Before the war, Iraq exported about 3.5 million barrels of oil per day, most of it transported through the Strait of Hormuz. However, they had to stop production in the majority of oil fields due to full tanks. Exports are also only through routes through Türkiye and Syria.

Iraqi Oil Minister Bassem Khodeir said on INA that exports “will gradually return to normal, depending on the level of traffic through the Strait of Hormuz”. According to data from Iraqi officials, the country’s crude oil exports through Hormuz in April were only 10 million barrels, from an average of 93 million barrels before the war.

Iraq depends heavily on crude oil exports. This product contributes about 90% of the government’s budget revenue.

The fact that the US and Iran reached a peace agreement last weekend gave the market some hope, even though the next negotiation process is at a deadlock. Iran announced on June 20 that it would close the Strait of Hormuz again, as Israel continued to attack southern Lebanon. US Vice President JD Vance was present in Switzerland on June 21 to negotiate with Tehran.