Iran's Oil Sector Rides Out Conflict While Iraq and Kurdistan Struggle

The ongoing war between the US and Iran has cast a shadow over oil and gas infrastructure in the region, affecting transport routes, foreign investment, and global energy security.

According to data from Kpler, production in Iraq and the Kurdistan Region dropped significantly by 66% and 46%, respectively, compared to the same months in 2025. In contrast, Iran's production decline during the same period ranged between 4% and 39%.

In June 2026, Iran produced 2,610,000 barrels of oil per day (bpd), while Iraq and the Kurdistan Region combined produced approximately 1,604,000 bpd. The main reasons for this disruption in Iraq and the Region were security risks and the closure or obstruction of export hubs.

The Strait of Hormuz played a crucial role, as Iran's military dominance over the area allowed its oil tankers to pass through with lower security risks compared to international vessels carrying Iraqi oil. Additionally, Iran's nationalized oil sector and control over export routes contributed to its resilience in the face of conflict.