Iraq anticipates restoring its oil production to pre-conflict levels within one to two months, according to Salim Farhoud, spokesperson for the Iraqi Oil Ministry. He stated that oil fields previously operating at reduced capacity have already begun to increase their output.

The conflict in the Middle East, which began in late February, led Iran to blockade the Strait of Hormuz. This action severely disrupted oil transport, compelling many key producing nations, including Iraq, to reduce their output and causing significant turbulence in global energy markets.

Iraq, a founding member of the Organization of the Petroleum Exporting Countries (OPEC) and the second largest producer within the bloc, previously exported approximately 3.5 million barrels of oil daily. The majority of these exports were transported via the Strait of Hormuz. However, due to full storage tanks, Iraq was forced to halt production at most of its oil fields. Exports were subsequently limited to alternative routes through Turkey and Syria.

An oil production facility in Basra, Iraq, was attacked on 4/4. *Photo: Reuters*

Iraqi Oil Minister Bassem Khodeir indicated to the national news agency INA that export operations "will gradually return to normal, depending on traffic flow through the Strait of Hormuz". Iraqi officials reported that crude oil exports via Hormuz in April plummeted to only 10 million barrels, a stark contrast to the average of 93 million barrels before the conflict.

The nation's economy is heavily dependent on crude oil exports, which contribute about 90% of the government's budget revenue.

Market optimism was briefly buoyed by a peace agreement reached between the US and Iran last weekend, though subsequent negotiations have stalled. On 20/6, Iran announced a renewed closure of the Strait of Hormuz, citing ongoing Israeli attacks in southern Lebanon. US Vice President JD Vance arrived in Switzerland on 21/6 for discussions with Tehran regarding the situation.

Ha Thu (according to AFP)