Most of Iraq's oil activities, projects halted due to war conditions

Most of Iraq's oil activities and projects have been halted due to current war conditions, a senior Oil Ministry official said Friday, as the regional conflict takes a growing toll on the country's energy sector.

"Most activities and projects are currently suspended due to the reality imposed by the war," Bassem Mohammed Khudair, deputy oil minister for extraction affairs, told the official Iraqi news agency INA.

Production levels at oil fields could return to previous rates "within days if the crisis ends," he said, adding that gas projects have not fully stopped but their continuity "depends directly on an end to the ongoing war."

Producing fields that do not rely on imported materials are still being managed effectively by Iraqi personnel working in coordination with foreign companies remotely, Khudair said. Construction projects face the greatest challenges, however, as they depend heavily on imported materials and logistical support.

He warned that the closure of the Strait of Hormuz "poses a major obstacle to sustaining these vital projects."

Deputy Oil Minister Hayan Abdul Ghani said Friday that output at Basra Oil Company has been sharply reduced from 3.3 million barrels per day to 900,000 barrels, according to INA. The cut followed a halt in oil exports from southern ports, he said, with current output directed toward operating domestic refineries.

The Strait of Hormuz has been effectively disrupted since early March. Around 20 million barrels of oil normally pass through the waterway daily, and the disruption has driven up shipping costs and pushed global energy prices higher.

For nearly a month, the US and Israel have carried out an air offensive on Iran, killing over 1,340 people so far, including then-Supreme Leader Ali Khamenei.

Tehran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and infrastructure damage while disrupting global markets and aviation.