Iraq cuts crude oil production over closure of Strait of Hormuz

Iraq has announced a reduction in its crude oil production due to decreased and halted exports following Iran's closure of the Strait of Hormuz, amid ongoing regional escalation.

The Iraqi Ministry of Oil said in a statement on Tuesday evening that the reduction in crude oil production will not affect the operation of refineries or the continued production of petroleum derivatives, which are needed to meet domestic oil demands.

The ministry said all refineries in the southern, central, and northern regions "are operating continuously at full capacity to produce various petroleum products, ensuring sufficient supply for daily local use and storing any surplus."

Iran's Islamic Revolutionary Guard Corps (IRGC) said Monday that the Strait of Hormuz has been closed to transit and warned that vessels attempting to cross would be attacked in the wake of US-Israeli attacks on the country.

The Strait of Hormuz, located at the mouth of the Persian Gulf, connects Middle Eastern oil and LNG exports to global markets via the Arabian Sea and Indian Ocean.

Major producers, including Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Qatar, rely heavily on the passage. European markets and major Asian economies such as China, India, Japan and South Korea depend on it for energy imports.

Iran's move came as the US and Israel launched a large-scale attack on Iran on Saturday, killing nearly 800 people, including Supreme Leader Ali Khamenei.

Tehran has retaliated with drone and missile strikes targeting Israel as well as Gulf countries which are home to US assets.