Iraq Cuts Oil Output Further While Seeking Kirkuk Field Restart

Financial outlets focus on the tanker attacks and Iraqi port shutdown as a fresh supply shock that pushed Brent and WTI futures up more than 6%. They stress that Iraq’s earlier output cuts, stalled Kirkuk and Kurdish exports, and Hormuz risks leave little spare capacity to offset disruptions. Market commentary warns that any further attacks on Gulf shipping or delays in restarting northern Iraqi exports could drive another leg up in oil prices.

• •Reports of tanker attacks near Iraq and halted port operations triggered a jump of over 6% in Brent and WTI prices.
• •Iraq’s decision to keep production around 1.4 million barrels per day limits its ability to quickly increase exports if prices spike.
• •The continued shutdown of the Kirkuk–Turkey pipeline and Kurdish exports removes hundreds of thousands of barrels per day from the market.
• •Traders now price in a higher risk premium for any crude shipped through the Strait of Hormuz and nearby Gulf waters.
• •Energy markets see Iraq’s internal dispute with Erbil as a key obstacle to restoring lost northern export volumes.