Iraq has declared force majeure on all oilfields developed by foreign oil companies after military operations in the region disrupted navigation through the Strait of Hormuz, halting most of the country’s crude exports, three energy officials with direct ​knowledge of the decision said, reports Reuters.

“The international partners were unable to nominate tankers to lift crude, preventing exports despite the ​state oil company SOMO being ready to load shipments,” the letter said.

“Based on the situation, the ​ministry ordered a full shutdown of production at affected concession areas, with no compensation arising from the measure ‌under ⁠contract terms.”

The ministry said the scale-back would be reviewed periodically depending on regional developments and invited companies to urgent talks to agree on essential operations, costs and staffing under the force majeure conditions.

Iraq’s Oil Minister Hayan Abdel-Ghani said crude production at Basra Oil Company has been cut to 900,000 ​barrels per day (bpd) from ​3.3 million bpd after ⁠exports from the country’s southern ports were halted, according to a ministry statement on Friday. The produced quantities were being pumped to operate refineries, the ​ministry statement said.

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