How do I recover my hacked Outlook account on iPhone SE?

Email account has not ties to your phone service so whatever may have happened to the email account has nonbearing on the phone's ability to make or receive calls.

Does the iPhone show cell service bars? Is the SIM card active in Settings ➜ Cellular?

Outlook is a Microsoft product / service. Contact Microsoft for support of their products.

Phone does not connect to the number dialed with silent and no ringing. Then call drops saying “call failed”

Your descriptions are fairly vague, but this suggests you have no cellular service. Did you fail to make a payment to your carrier?

I severely doubt your phone doesn't work.

An email can't block anything, besides the fact you should already be logged into Outlook automatically. That's how it works.

It sounds more like someone figured out your MS account name and password and took over your account by changing the password.

Sorry, your question a bit vague and unclear.

You could not sign in to what?

Did you provide your outlook email's password to a website?

Deleting the Outlook app should have no effect on your iPhone.

What is wrong the iPhone? What iOS it doing to not doing exactly?

Were you using your Outlook email as the primary email address for your Apple Account on your iPhone?

You'll need to provide much more detail and context about the issue you are having now before any one can offer any advice.

cm6y wrote:

IOS is 26.2

Phone does not connect to the number dialed with silent and no ringing. Then call drops saying “call failed” Yes, using outlook email is the primary account for Apple.

I had this outlook email account for a very long time. I never sign in or log out since there is no options. No password was visible on website since I never logged in.

Maybe create a new email address, can be anything even google.com address, then change your Apple Account to use that new one instead.

see Change your Apple Account primary email address – Apple Support (UK)