Iraq sees oil output returning to pre-war levels in 1-2 months
Iraqi officials say crude oil output will return to pre-war levels within one to two months, after the Middle East war and Iran’s blockade of the Strait of Hormuz slashed exports. Spokesman Salim Farhoud told state media that fields cutting production are already raising capacity, and Minister Bassem Khodeir noted exports will rise gradually as Hormuz flow smooths. Before the war, Iraq exported about 3.5 million barrels per day, mostly via the strait, but in April shipments fell to just 10 million barrels from an average of 93 million.
For Nigeria, where oil revenues normally cover about 90 percent of the federal budget, a resurgence of Iraqi supply could add to global oil glut and put downward pressure on crude prices. Lower prices would shrink Nigeria’s dollar earnings, potentially affecting government spending and the naira’s strength, while also offering relief at the pump if domestic fuel prices follow global trends.
Readers should watch Brent crude prices over the next weeks for signs of easing; consider how any price drop might affect personal fuel costs and broader household budgets; and note that Iraq’s recovery hinges on the Hormuz route staying open and the US‑Iran deal holding. What impact would a sustained fall in oil prices have on your household budget or business plans?