Iraq has experienced a dramatic decline in its oil production, with output from southern fields plummeting by 70% since the military action involving the United States and Israel against Iran last Saturday. This decrease was reported by sources within Iraq's oil sector to Reuters, highlighting the immediate impact on one of the country's most vital industries.

Before the conflict, Iraq's oil production from these southern fields was approximately 4.3 million barrels per day. As the situation escalated with military strikes, production has dwindled to a concerning 1.3 million barrels per day. This reduction not only affects Iraq's economy but also has broader implications for global oil supplies given the country's significant role in the oil market.

The ongoing instability in the region is likely to exacerbate challenges for Iraq's oil industry, which is already grappling with various economic and political hurdles. Moving forward, the international community will be closely monitoring the developments, as fluctuations in oil supply can have far-reaching effects on global energy prices and economic conditions globally.