# Iraq oil production and export response to Hormuz crisis

> Live situation record from CLSTR: https://clstr.news/situations/iraq-oil-production-and-export-response-to-hormuz-crisis
> Updated: 2026-08-21T13:35:06.000Z. Sources: 9. Developments: 3.

Iraq is adjusting its oil production and export strategies in response to a crisis in the Strait of Hormuz caused by US-Israel strikes on Iran. Initially, reports indicated that Iraqi oil exports had dropped from 3.4 million barrels per day to between 1.5 and 1.7 million barrels per day due to maritime trade restrictions. In response, Prime Minister Ali al Zaidi ordered oil companies to operate 24 hours a day to boost crude production and develop energy infrastructure. The Prime Minister emphasized the need to strengthen alternative export routes and rehabilitate pipelines to mitigate the crisis.

By mid-August, daily oil exports rose to approximately two million barrels, with total monthly exports reaching about 26 million barrels. This represents the highest level since the onset of the conflict impacting the Strait of Hormuz.

To address ongoing logistical challenges from the closure of the Strait, Iraq is diversifying its export routes by utilizing the Ceyhan pipeline in Turkey and exploring increased shipments through Syria and Jordan. Prime Minister Al-Zaidi has announced an ambitious plan to increase daily oil production to between 8 and 10 million barrels within the next six years. To support this, Baghdad is seeking a higher production quota within the OPEC+ framework and has sent a delegation to Saudi Arabia to negotiate.

Furthermore, Iraq has secured approximately $200 billion in energy sector contracts with international firms, including Chevron, Halliburton, and HKN Energy. The American consulting firm DeGolyer and MacNaughton is currently conducting an independent assessment of maximum sustainable production capacity, with findings expected in late September to inform 2027 production baselines.

## Claims

- Iraq aims to increase oil production to between 8 and 10 million barrels per day within the next six years. (corroborated by 4 sources)
- Iraq is seeking a higher production quota within the OPEC+ framework. (corroborated by 4 sources)
- Iraq's oil production was approximately 4 million barrels per day before the conflict with Iran. (corroborated by 3 sources)
- The US-based firm DeGolyer and MacNaughton is conducting an independent assessment of the maximum sustainable production capacity for OPEC+ members. (corroborated by 2 sources)
- Iraq is working to increase oil exports through the Ceyhan pipeline in Turkey, as well as through Syria and Jordan. (corroborated by 2 sources)
- OPEC+ expects to receive the results of the production capacity assessment from DeGolyer and MacNaughton in late September. (corroborated by 2 sources)
- The closure of the Strait of Hormuz due to conflict between Iran and the United States poses a major challenge to Iraqi oil exports. (single source)
- Iraq has signed approximately $200 billion in energy sector contracts with companies including HKN Energy, Chevron, and Halliburton. (single source)

## Timeline

### 2026-08-21: Iraq targets 10 million barrels of daily oil production within six years

Iraq aims to boost oil production to 8–10 million barrels per day within six years while seeking higher OPEC+ quotas and diversifying export routes to bypass the Strait of Hormuz.

4 sources. https://clstr.news/cluster/iraq-targets-10-million-barrels-of-daily-oil-production-within-six-years

### 2026-08-17: Iraq orders 24-hour oil operations to boost production

Iraqi Prime Minister Ali al Zaidi has ordered oil companies to operate 24/7 to increase production and expand export infrastructure following a significant drop in crude exports due to the Strait of Hormuz संकट

2 sources. https://clstr.news/cluster/iraq-orders-24-hour-oil-operations-to-boost-production

### 2026-08-16: Iraq oil exports rise amid global energy transition pressures

Iraq's oil exports have hit their highest levels since regional conflict disrupted the Strait of Hormuz, while high global prices are driving calls for an accelerated energy transition toward electric vehicles.

3 sources. https://clstr.news/cluster/iraq-oil-exports-rise-amid-global-energy-transition-pressures

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Cite as: Iraq oil production and export response to Hormuz crisis. CLSTR, https://clstr.news/situations/iraq-oil-production-and-export-response-to-hormuz-crisis