Iraqi energy officials say Iraq's oil output fell further as storage fills and exports via Hormuz are blocked by the conflict; output from southern oilfields fell ~80% to around 800k BPD; more oil production cuts are possible if Hormuz is not open

Iraq's oil output decline due to blocked exports and filling storage is significant, reducing production from southern oilfields by about 80%. This not only tightens supply at a time when global demand is recovering but also raises the possibility of further cuts, which can exacerbate upward pressure on oil prices, particularly WTI. The disruption in Hormuz poses a critical risk to stability in the oil market, affecting broader inflation and currency dynamics as well.