Iraq’s oil exports have effectively vanished. A country that was shipping 3.32 million barrels per day just a year ago is now moving roughly 96,000 bpd, a collapse of more than 97% triggered by the ongoing US-Israeli military campaign against Iran and the near-total closure of the Strait of Hormuz to Iraqi tanker traffic.
The financial math is brutal. Iraq derives approximately 90% of its government revenue from oil sales. Monthly oil income has cratered from around $6.8 billion before the conflict to figures below $1 billion in recent months.
OPEC’s response: a quota bump that barely registers
On June 7, 2026, OPEC+ agreed to raise Iraq’s oil output quota by 26,000 bpd starting in July. That increase is part of a broader 188,000 bpd production hike spread across several member countries.
Iraq has historically argued it deserves more room to pump. Baghdad has previously claimed a production capacity of 5.5 million bpd while operating under a quota of 4.4 million bpd. That gap was already a point of tension within the cartel before the war started.
