Iraq announces understandings with US and Iran to mitigate Strait of Hormuz blockade impact
via Punch Nigeria19 hours ago1 min read
Iraq's oil ministry announced it has reached "understandings" with the United States and Iran to lessen the effects of the Strait of Hormuz blockade on its oil exports. While the ministry did not provide details or a timeline for these agreements, Iran had previously stated it would permit Iraqi shipping through the waterway. Saheb Bazoun, spokesperson for the Iraqi oil ministry, confirmed to the Iraqi News Agency that these understandings aim to circumvent the blockade and guarantee exports. As a founding member of OPEC, Iraq typically ships most of its crude through the strait and has been seeking alternative routes. Bazoun also noted Iraq's continued use of secondary export routes, including a pipeline to Turkey's Ceyhan port and via Syria's Baniyas port. Earlier this month, Iraq began exporting crude by tanker trucks through Syria and resumed oil exports of 250,000 barrels per day through Ceyhan. The Middle East war has significantly disrupted energy markets, particularly after Iran restricted the Strait of Hormuz, which handles about a fifth of global oil and gas, leading to reduced maritime traffic and reported transit fees. Despite a two-week ceasefire between the US and Iran, Washington imposed a blockade on Iranian ports in the Strait of Hormuz, impacting global energy markets. Oil exports constitute approximately 90 percent of Iraq's budget revenues, which saw a decline of over 70 percent in March compared to February.
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Original source
This summary was AI-generated from a story originally published by Punch Nigeria.
