Shafaq News- Baghdad

Iraq and other Middle Eastern oil producers may need around four months to restore nearly 80% of pre-war production levels following disruptions caused by the regional conflict and export restrictions in the Strait of Hormuz, S&P Global estimated in a new report.

Oil output in Iraq has fallen to about 1.3 million barrels per day from roughly 4.3 million before the conflict, while exports dropped below 800,000 barrels per day because of shipping disruptions in the Strait of Hormuz during the US-Israeli war on Iran, causing estimated daily losses of around $128 million.

S&P Global noted that Iraq was among the countries forced to reduce production during the early stages of the conflict because of storage constraints and export difficulties. The report projected a gradual recovery, clarifying that many oil fields in the country and across the region rely heavily on water and gas injection systems to maintain reservoir pressure.

Prolonged shutdowns complicate restart operations by requiring multiple overlapping phases, including restoring logistics services, reducing inventories, and gradually returning output to previous levels, the company noted, warning that full recovery could extend beyond four months and that oil and gas production costs may rise between 4% and 6% if the conflict remains contained, potentially reaching 15% in the event of an extended escalation.

Read more: Iraq's oil lifeline is blocked: The crisis runs deeper than Hormuz