Iraq has started cutting crude production at key southern oil fields as regional tensions disrupt tanker movement through the Strait of Hormuz, Iraqi oil officials said on Tuesday.

Output reductions are underway at the Rumaila Oil Field, while around 460,000 barrels per day have been shut in at West Qurna 2. The move comes after shipping constraints and limited tanker availability pushed storage capacity at southern export terminals close to critical levels.

Officials said disrupted navigation routes have slowed crude lifting operations, forcing authorities to scale back production to avoid overflow at storage facilities.

In a separate development, a drone strike hit the Port of Fujairah, the United Arab Emirates’ largest oil export terminal located outside the Strait of Hormuz. Smoke was seen rising from parts of the facility following the attack on storage tanks and related infrastructure. While no major structural destruction has been officially confirmed, the incident has intensified concerns about the vulnerability of Gulf energy assets.

The Strait of Hormuz handles nearly 20% of global oil trade. Prolonged disruption at this strategic waterway could significantly tighten supply, particularly for Middle Eastern crude shipments to Asia.

Oil markets reacted sharply to the heightened geopolitical risk. By 09:00 PM PKT on Tuesday, Brent crude futures had climbed 7.9% to $84 per barrel, while West Texas Intermediate (WTI) rose 8.3% to $77 per barrel.