Iraq has started shutting down crude oil production at its biggest oilfields, including the Rumaila field and the West Qurna 2 project, due to the closure of the Strait of Hormuz amid the escalating Iran war.
The shutdowns will stop a majority of the country's output, with the country's oil ministry expecting the reduced crude output to not impact its refining operations.
The war has all-but halted ship traffic through the Strait of Hormuz, leaving just a handful of empty tankers inside the Persian Gulf and still available to load.
Saudi Arabia is also considering alternative export options, including using a pipeline that runs across the kingdom to the Red Sea coast to get the oil to customers.
The cost of shipping Middle East oil has risen to unprecedented levels, with day rates for supertankers to deliver the region's oil to China now at about $481,000.
