Iraqi oil production has plummeted due to fighting and transportation disruptions, with output from major southern oil fields falling by approximately 80%.

According to Mars Finance, on March 25th, Iraqi energy officials stated that due to the ongoing war with Iran, coupled with near-capacity crude oil storage and disruptions to shipping through the Strait of Hormuz, the country's oil production continues to decline sharply. Data shows that production from Iraq's main southern oil fields has further declined by approximately 80%, falling to about 800,000 barrels per day; earlier this month, production in the region had already fallen from approximately 4.3 million barrels per day before the war to 1.3 million barrels per day. To cope with storage pressure and export bottlenecks, Iraq has decided to further reduce production starting Tuesday. Furthermore, Iraq has requested BP to reduce production at the Rumaila oil field from approximately 450,000 barrels per day to 350,000 barrels per day; and Eni to reduce production at the Zubair oil field from 330,000 barrels per day to 260,000 barrels per day.