Iran allowed Iraq to pass through the Strait of Hormuz
Kyiv • UNN
Iran has allowed Iraqi vessels free passage through the Strait of Hormuz for oil exports. This decision could bring 3 million barrels per day back to the global market.
Iran has stated that Iraqi vessels are exempt from restrictions on passage through the Strait of Hormuz, which remains partially blocked amid the war and escalation in the region. This was announced by the Iranian military, noting that "brotherly Iraq" can use the route without restrictions. According to Bloomberg, this refers to the possibility of bringing up to 3 million barrels of Iraqi oil per day to the market, writes UNN.
Details
At the same time, it is still unclear whether the exception applies to all Iraqi tankers and all of the country's oil exports, as well as how this mechanism will work in practice. An Iraqi official, cited by the agency, noted that the effect will depend on whether shipping companies agree to enter the strait under conditions of risk.
Iraq's exports plummeted after restrictions in the strait
After the restriction of navigation through the Strait of Hormuz, Iraq, one of the largest oil producers in OPEC, was forced to reduce production and exports. Some supplies remained possible only through a pipeline to the Turkish port of Ceyhan, but this was not enough to maintain previous export volumes.
Amid the hostilities, Iran had previously allowed certain "friendly" countries or vessels to pass through the strait under special conditions. Bloomberg also reported that Tehran separately allowed the passage of vessels with essential goods to its ports. Despite this, transit through the Strait of Hormuz still remains significantly below pre-war levels.
The Strait of Hormuz is one of the key routes for global energy – before the current escalation, approximately one-fifth of global oil supplies passed through it.