OPEC's second-largest producer said it is reducing crude exports to ensure output is within its OPEC+ specified quota and compensate for additional quantities produced during previous months.
The reduction also includes cutting domestic consumption, the ministry added in a statement.
Iraq's crude exports had averaged 3.48 million bpd in July and 3.41 million bpd in June.
In August, a source told Reuters that Iraq has planned to reduce its oil output to between 3.85 million and 3.9 million bpd in September.
Earlier on Thursday, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, adding it could further pause or reverse the hikes if needed.