Baghdad (IraqiNews.com) – US-based oil firms SLB and Baker Hughes have seen a reduction in oil activities in Iraq during the first quarter of 2026. The firms also expected an increase in worldwide expenditure on oil exploration and production operations in the coming months following the war against Iran and the interruption of supply through the Strait of Hormuz. According to data from the two firms, Iraq was one of the markets most affected in the past few months as a result of security challenges and the decline in oil output and exports, Shafaq News reported.
According to SLB, the turbulence in Iraq and Qatar contributed to a $2.69 billion drop in Middle Eastern and Asian sales, with an annual reduction of more than 10 percent. Baker Hughes had an even greater reduction in regional revenues, falling 19 percent to $1.15 billion. The company underlined that the disruption in oil activity had a direct impact on drilling services, equipment, and supply chains, with certain projects delaying or being postponed.
Given that approximately 20 percent of global oil flows pass through the Strait of Hormuz, both corporations believe the conflict has highlighted the vulnerability of global dependence on Middle Eastern oil. This situation is prompting governments and energy firms to invest more in alternative resources and to diversify their production sources away from conflict zones. Iraq is projected to be one of the key beneficiaries of the imminent wave of expenditure, given its vast oil reserves and low production costs, as well as the necessity for multinational firms to immediately compensate for the supply shortfall. Oil companies are also anticipated to increase their activities in Iraq, notably in the drilling, oil well rehabilitation, and infrastructure development sectors.