Shafaq News- Baghdad

Iraq’s oil production has dropped sharply from 4.3 million barrels per day (bpd) to about 1.3 million bpd after shipping through the Strait of Hormuz was disrupted, according to industrial reports cited by Reuters.

The decline reduced Iraqi crude exports to less than 800,000 bpd, directly affecting refineries and petrochemical companies in Asia, particularly in China. Reports indicate that several major Chinese refineries have cut operating rates or halted some processing units due to the shortage of Iraqi crude. Companies have begun seeking alternative supplies from Africa and Latin America to offset the disruption.

Maritime shipping and insurance costs have also risen because of heightened security risks in the Strait of Hormuz, contributing to higher petrochemical product prices across Asian markets.

Iraq remains a key supplier for energy security in China and across Asia, where disruptions in Iraqi production or exports can quickly affect refinery operations and industrial activity.

Read more: Iraq braces for financial meltdown amid Hormuz closing threats