Iraq’s oil revenue fell 84%, from $6.8 billion in February 2026 to $1.1 billion in April, after the U.S.-Iran conflict disrupted shipping through the Strait of Hormuz, a narrow maritime chokepoint between Iran and Oman. Production declined from an average of 4.3 million barrels per day to approximately 1.4 million, while exports reached a low of 200,000 barrels per day. Iraq derives roughly 90% of government revenue from crude exports, prompting officials to draw on central bank reserves for government spending and public-sector salaries. Reserves fell from about $102 billion to $86 billion by late June. By September, exports had recovered to more than 3 million barrels per day using alternative routes and logistics, including pipelines through Turkey, although transit fees to Iran added costs. U.S. Energy Secretary Chris Wright said Strait of Hormuz maritime flows averaged just under 11 million barrels per day, or about 55% of the pre-conflict rate, while bypass pipelines added 3 million to 5 million barrels per day. Independent trackers estimated lower maritime flows of 6 million to 8 million barrels per day.