Iraq’s oil exports came to a complete standstill for 10 consecutive days in June due to regional instability triggered by the ongoing conflict between Israel and Iran, according to newly released data from the State Organization for Marketing of Oil (SOMO).

The disruption, which lasted from June 6 to June 15, marks one of the most significant halts in Iraq’s oil exports in recent years. SOMO statistics indicate that the last shipment before the stoppage occurred on June 5, with three million barrels loaded from Basra. Exports only resumed on June 16, when five million barrels were shipped.

Since the resumption, export volumes have shown sharp fluctuations. On June 17, shipments dropped to 2.95 million barrels before rebounding to four million barrels on June 18. The instability has raised concerns over Iraq’s ability to meet its export targets, as the country struggles to balance its OPEC quota of 3.3 million barrels per day (bpd) with its federal budget requirement of 3.5 million bpd to cover government expenditures.

The disruption highlights growing vulnerabilities in Iraq’s southern oil export infrastructure, which accounts for the majority of the country’s crude shipments. Analysts warn that as tensions escalate in the Middle East, particularly around critical transit routes such as the Strait of Hormuz, Iraq’s oil exports remain at risk of further interruptions.

“The security situation is deteriorating, and Iraq’s southern exports are highly exposed,” said one energy analyst. “If instability persists, Baghdad may need to explore alternative export options to mitigate losses.”

With southern exports under threat, Iraqi officials may be forced to reconsider using the Kurdistan Region’s pipeline network, which previously supplied oil to Turkey’s Ceyhan port. However, political disputes between Baghdad and Erbil over oil revenue sharing have kept the pipeline idle since 2023.

Reactivating the northern route could provide a temporary solution, but experts caution that resolving the longstanding disagreements between the federal government and the Kurdistan Regional Government (KRG) will be critical to ensuring stable exports.

The prolonged export halt has intensified pressure on Iraq’s economy, which relies heavily on oil revenues to fund public salaries and infrastructure projects. If disruptions continue, the government may face difficulties in meeting its financial obligations, further straining an already fragile fiscal situation.