Iraq has ordered a halt to crude oil production at the Rumaila oil field after Iran closed the Strait of Hormuz, preventing cargo ships from passing and causing crude oil storage to near full capacity.
Foreign news agencies reported on 3 Mar 2026, citing official documents and sources within Iraq's Ministry of Oil, that the Iranian government ordered the shutdown of the Rumaila oil rigs and wells. This followed Iran’s closure of the Strait of Hormuz, which blocked Iraq’s oil exports and led to critical levels of accumulated oil reserves.
The operations manager at the Rumaila oil field ordered on Tuesday a 100% reduction in oil production and pumping from the southern part of the field, effective from that afternoon onward.
The Rumaila oil field is jointly managed by BP and Iraq's Basra Oil Company, accounting for nearly one-third of Iraq’s total oil output.
On Monday, the Iranian military announced the closure of the Strait of Hormuz, a shipping route through which over one-fifth of the world’s oil passes, and threatened to burn any ship attempting to transit. This was in retaliation for US and Israeli attacks since Saturday, which resulted in the deaths of Iran’s long-standing Supreme Leader and several senior officials.
Oil production in Iraq’s northern Kurdistan region has also been affected by the Middle East conflict. Sources from local oil companies report that most foreign firms have "temporarily suspended production" as a precautionary measure.
The Kurdistan region hosts US-led coalition forces, and its capital, Erbil, is home to a large US consulate building.
Since the US and Israel launched attacks against Iran, Kurdistan has been targeted by multiple Iranian attacks, most of which have been intercepted by air defense systems.
Additionally, oil fields in Kurdistan have been attacked multiple times in recent years, believed to be carried out by armed groups supported by Iran.
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Source:ndtv