The Iraqi Cabinet has authorized the Ministry of Oil (Iraq) to exercise broad powers to manage a potential crisis in crude oil and petroleum product exports stemming from the closure of the Strait of Hormuz.
The move is aimed at preparing for anticipated disruptions to export operations, allowing the ministry to take emergency measures to mitigate the impact on Iraq’s oil flows and revenues.
According to unnamed Iraqi oil officials cited by Reuters, Iraq has already implemented significant cuts to crude oil production. These reductions could deepen within days as storage capacity nears its limits due to export bottlenecks.
However, an official statement from the Oil Ministry emphasized that the production cuts will not affect refinery operations or the continued output of refined petroleum products and liquefied gas. The ministry confirmed that crude production and associated gas investment are ongoing to ensure domestic energy supply remains stable.
The situation underscores Iraq’s vulnerability to maritime disruptions, given its heavy reliance on Gulf export routes for oil shipments.
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