Iraq's Oil Crisis: Basra on Life Support

0:00On April 2nd, Iraq's oil powerhouse in Basra is basically on life support right now, a month into the war with Iran. Oil feels that used to pump out over 3 million barrels a day are down more than 70% to around 900,000. Experts have stopped cold because Iran shut down the straight of Hormuz, and that's where nearly all Iraq's crude heads out. Ports are ghost towns too, with imports sliced in half. The conflict kicked off with US and Israeli strikes, hitting our rack hard since it sits between Iran-backed militias and American bases. Drones and missiles are ranting down on oil sites, energy hubs, and US companies, forcing hundreds of foreign workers from places like America, Britain, and France to bail. Fields like Maznoone have suspended production after drone crashes, and places like Rumayla are limping along. Workers are feeling the pinched first-hand engineers at sites like Zubair, say it's eerily quiet now, with output dropping from 400,000. Barrels a day to 250,000. They're focusing on local needs instead of exports,

1:04but everyone's on edge from the constant threats. Iraq leans on oil for 90% of its budget, so this is crushing the economy. Government officials are scrambling for workarounds, like rerouting ships through the United Arab Emirates, but it's pricey and slow. Um Kasser Port is running at half speed with just the trickle of cargo. The Iraq-Iran border crossing is jam too, hurting trade and pilgrims, though food gets priority to keep prices steady. Experts say Baghdad has cashed to last until mid-May, then it'll tap bonds or loans. As tanker owners steer clear of the risks and alternative routes like pipe mines or trucks prove too limited, Bosra's downturn is rippling globally. With higher oil prices, leaving Iraq's recovery hanging on, when or if, the straight reopens. From around the world, powered by AI, this is Global News Today. I'm Kori with the story.