Iraq reaches ‘understandings’ with Iran, US to safeguard oil exports amid Hormuz blockade: Ministry

ERBIL, Kurdistan Region - Baghdad has reached an “understandings” with Iran and the United States to bypass the ongoing blockade in the strategic Strait of Hormuz through which the vast majority of Iraq's oil is exported, Baghdad’s oil ministry said Tuesday, noting Iraqi efforts to resort to alternative routes to sell the country’s oil.

“There are understandings with both the American and Iranian sides to avoid the impact of a blockade on the Strait of Hormuz, along with all parties, to ensure [Iraqi] exports [are not affected],” said Sahib Bazoun, head of the ministry’s media department, as quoted by the state-run Iraqi News Agency (INA).

Bazoun added that the federal oil ministry’s policy is “to leave no stone unturned in seeking to export [the country’s] oil,” stressing that this is a matter of the “national economy,” as “more than 90 percent of Iraq’s economy relies on oil exports.”

A Pakistan-brokered two-week ceasefire between the US and Iran came into effect early last week, following nearly 40 days of war that began on February 28, when the US and Israel launched a joint aerial campaign targeting thousands of sites across Iran.

In response, Tehran carried out thousands of drone and missile strikes across the Middle East, targeting alleged US assets in the region - particularly in Gulf Arab states - as well as launching retaliatory attacks against Israel.

Iran also effectively shut down maritime traffic through the Strait of Hormuz, deploying sea mines and intensive monitoring that reduced maritime movement to near zero. The Strait is a critical global chokepoint, through which more than one-fifth of the world’s energy supplies pass. Its closure has driven oil prices up by 40 to 50 percent and disrupted international supply chains.

Consequently, Iraq’s oil sector has seen an over 80 percent decline in exports, with the oil ministry reporting on Monday that the country’s oil revenues dropped to nearly $1.96 billion in March - a notable decline from the $7 billion in revenue recorded in February before the Iran-Israel-US war erupted.

In the wake of the Pakistan-mediated truce, senior American and Iranian negotiators held rare face-to-face talks in Islamabad on Saturday. The discussions lasted roughly 21 hours but ended without a final agreement.

While reports suggest that a new round of talks may be on the horizon between the warring sides, US President Donald Trump on Monday announced a blockade on Iran’s maritime traffic, while the Iranian military later in the day warned that Tehran will close the waterway completely and target US warships passing through.

Amid the volatility of the situation, Bazoun noted on Tuesday that Iraq’s oil ministry “continues to activate secondary export routes,” including shipments from the Kurdistan Region to Turkey’s Ceyhan port via the Iraqi-Turkey Pipeline (ITP), “which has a capacity [to export] 1.6 million barrels per day,” the official said.

He further noted that “Iraqi oil is also being exported through Syria’s Baniyas port,” and that “efforts are underway to reactivate a pipeline with Saudi Arabia that has been idle since 1991.”

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