Iraq Oil Production Recovering to ~1.5M bpd; Deputy Minister Says Full Resumption Within Week of Hormuz Resolution

Iraq's Deputy Oil Minister Bassem Mohammed stated on May 2, 2026 that southern field production had recovered to approximately 1.5 million barrels per day, up from a low of roughly 800,000 bpd in March 2026 — still well below the pre-crisis level of 4.3 million bpd. The Hormuz blockade, in effect since late February 2026 due to the US-Iran regional war, had forced Iraq to drastically cut production as tanker access to the Gulf was severely restricted. The Deputy Minister emphasized that full production and export recovery could occur within one week of the Strait of Hormuz crisis ending, as wells and infrastructure were largely intact. Iraq's annual oil export revenue — the source of approximately 90% of government spending — was tracking toward a severe shortfall compared to the $88 billion recorded in 2024.