Crude oil production in southern Iraqi provinces has seen a steep 80% decline, as documented by Dijla Point News, coinciding with maximum capacity in storage facilities and halted exports through the Strait of Hormuz. Giant fields like Majnoon and Rumaila are heavily affected, posing a severe challenge to the national energy sector.

This near-total paralysis is directly linked to escalating regional geopolitical tensions that have hindered maritime tanker routes. Iraqi strategic oil reserves have reached critical limits, requiring urgent logistical interventions to prevent a complete shutdown of producing wells.

This crisis places enormous pressure on the public treasury, as the federal budget relies on oil revenues for over 90% of its funding, warning of dire economic consequences unless export operations resume immediately.