Iraq has declared force majeure on all petroleum concessions operated by international oil companies, citing the escalating regional conflict as justification for production shortfalls.
State-owned Basra Oil Company output has cratered to 900,000 barrels per day, down from its operational capacity of 3.3 million barrels daily. The collapse reflects not only direct military impacts but also logistical failures: the Strait of Hormuz blockade prevents export of crude that could be lifted from Iraqi ports.
TankerMap data shows Iraqi crude typically moves through Basra terminals on the Persian Gulf. With the Hormuz transit route effectively closed, traders face a dual constraint: production is offline, and remaining supplies cannot reach export markets. International partners including Shell, ExxonMobil, and Chevron are assessing force majeure claims and potential compensation under contract terms.