Iraq’s oil exports have declined by between 2.5 million and 3 million barrels per day as a result of escalating tensions in the Gulf region and the continued closure of the Strait of Hormuz, according to trading sources cited by Reuters.

The report stated that Iraq, alongside the United Arab Emirates and Kuwait, has sought alternative export routes to maintain part of its crude shipments and prevent a complete shutdown of exports. Despite these measures, export volumes remain significantly below normal levels.

Reuters noted that the current losses are lower than initial estimates, which had projected disruptions ranging from 12 million to 15 million barrels per day. Updated forecasts indicate that total supply losses from Gulf producers are now estimated at between 5 million and 6 million barrels per day.

The disruption has also contributed to a drawdown in global oil inventories, particularly due to reduced exports from major producers such as Iraq. Analysts warn that if the crisis continues, shrinking stockpiles could drive oil prices substantially higher in the coming weeks.

The export disruptions follow Iran’s decision to close the Strait of Hormuz to commercial shipping in response to U.S. and Israeli strikes on Iranian targets on February 28.

The move sent shockwaves through global energy markets, triggering a sharp increase in oil and gas prices and raising concerns about the stability of international energy supplies.