Oil Prices Surge by Nearly 4% Following Iraq’s Production Cut and Regional Tensions

Baghdad: Global oil prices experienced a significant jump of nearly 4% early Saturday after Iraq announced a reduction in its oil production, compounded by the ongoing U.S.-Israeli conflict affecting Iran. According to Palestine News and Information Agency - WAFA, the price of Brent crude rose to $112.4 per barrel, marking a 4% increase. Meanwhile, West Texas Intermediate crude saw a rise to $98.35 per barrel, up by 2.8% as of 20:00 GMT. These increases follow Iraq's decision to cut the production of Basra crude to 900,000 barrels per day, a stark decrease from the previous 3.3 million barrels per day. Iraqi Oil Minister Hayan Abdul-Ghani stated on Friday evening that the reduction was a result of the suspension of exports from southern ports. He noted that the current production is being redirected to supply domestic refineries, as reported by the Iraqi News Agency. The conflict involving Iran has further complicated the energy supply landscape, with a notable decline in maritime traffic through the Strai t of Hormuz. Reports suggest that hundreds of vessels are now stalled on both sides of this crucial waterway due to escalating security concerns.