Iran exempts Iraq from Strait of Hormuz blockade

ERBIL, Kurdistan Region- Iran on Saturday evening announced that Iraq is now exempt from restrictions placed on maritime traffic in the Strait of Hormuz, following a month-long economic standstill that has crippled the Iraqi oil sector.

Ebrahim Zolfaghari, spokesperson for the IRGC’s Khatam al-Anbiya Headquarters, stated that "brotherly Iraq" is exempt from the blockade, which he claimed would now only apply to "hostile nations." Zolfaghari added that Tehran maintains "the utmost respect for Iraqi national sovereignty."

The sudden policy shift follows a five week bombing campaign against Iran by the US and Israel. Tensions reached a new height on Saturday when US President Donald Trump issued a 48-hour ultimatum, warning that "all hell will break loose" if his administration's demands are not met, after reminding that he gave Iran ten days to “MAKE A DEAL OR OPEN UP THE HORMUZ STRAIT” .

The exemption follows a period where Iraq unsuccessfully tried negotiating with Iran for relief in early March. Recent data shows that the resulting blockade brought Iraq’s oil-dependent economy to a halt. Iraq’s combined oil production plummeted from 4.5 million barrels per day (bpd) in February 2026 to just 1.33 million bpd today.

Production in the Kurdistan Region was significantly impacted, falling from 314,000 bpd to only 80,000 bpd. Total Iraqi exports, which previously reached 3,567,000 bpd, had almost completely stopped due to the country’s 95% reliance on the Strait of Hormuz. Attempts to bypass the blockade by trucking oil through Syria faced significant logistical obstacles and failed to replace maritime volumes.

Zolfaghari characterized the relationship between the two nations as a shared struggle. "The Iranian and Iraqi peoples stand in a single trench," Zolfaghari said, calling for a joint victory against the US and Israel.

The announcement was made as the region awaits the expiration of the 48-hour deadline issued by US President Trump.