Basra tanker attack marks deepening crisis for Iraq oil sector

BASRA - Iraq's oil sector is plunging deeper into crisis after Iran destroyed two tanker ships in Iraqi territorial waters late Wednesday.

The attack not only highlights the grave threat to shipping lanes that has already shut down Iraq's southern oil exports, which account for more than 90 percent of state revenue, but it could also hasten a further reduction in oil production as Iraq loses fuel storage capacity and is forced to cut refinery activity.