Oil-rich Iraq to cut production after Strait of Hormuz closure
Kyiv • UNN
Iraq's Ministry of Oil will halt production at a key field due to disruption of the waterway. The war in Iran has stopped tanker traffic through the Strait of Hormuz, leading to a rise in oil prices.
Iraq's Oil Ministry announced it would halt production at a key oil field as the war in Iran disrupted the functioning of a crucial waterway to the oil-rich Persian Gulf, UNN reports, citing AP.
Details
The escalating war between Iran and the United States with Israel has halted tanker traffic through the Strait of Hormuz, leading to a global surge in oil prices.
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About a fifth of the world's oil volume passes through the strait, transporting oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, UAE, and Iran.
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The Iraqi ministry cited a shortage of tankers entering the Gulf, which forced them to "stop production and pumping" from the southern Rumaila fields near the city of Basra. This tanker shortage led to "an increase in storage levels at our oil depots to critical levels."
The strait is about 33 kilometers wide at its narrowest point. It connects the Persian Gulf with the Gulf of Oman. From there, ships can travel to the rest of the world.