Iraq's energy ministry instructed operators of five key oil fields to raise output to pre‑war levels, aiming for more than 3 million barrels a day. The directive follows the United States‑Iran agreement intended to fully reopen the Strait of Hormuz, a chokepoint for global oil shipments. Restoring higher flow could tighten supply and support prices, and could influence OPEC's output plan.

Production at the targeted fields—home to Iraq's most prolific wells—has lingered below capacity since the 2003 invasion. By pushing output back up, the government hopes to capture lost revenue and reassure investors that the country can meet export commitments. Market participants watch the move as a barometer for regional stability after years of sanctions‑related volatility, and improve fiscal balances ahead of upcoming elections.

Analysts note that hitting the 3‑million‑barrel target could shave a few percentage points off the global supply deficit, nudging Brent crude toward $85 a barrel. If the Strait of Hormuz remains open, shipping costs may fall, further bolstering margins for refiners. Iraq's latest production push signals it will leverage diplomatic openings to maximize oil earnings this year, making Iraq a more attractive partner for investors.