Iraq
Iraqi Prime Minister Ali al-Zaidi speaks with Oil Minister Bassim Mohammed Khudair during a meeting at the oil ministry headquarters in Baghdad on May 20, 2026. Photo: Iraqi oil ministry
ERBIL, Kurdistan Region - Iraqi Prime Minister Ali al-Zaidi on Wednesday directed oil officials to immediately secure alternative export routes and ensure the smooth transit of tankers, Baghdad’s oil ministry reported, adding that the instructions come amid mounting supply disruptions, particularly through the strategic Strait of Hormuz.
“The ministry represents the primary artery of the Iraqi economy,” the ministry said in a statement, noting that Zaidi stressed the need to safeguard revenues “particularly given the critical phase the region is currently undergoing.” The statement added that the premier ordered officials to “expedite the process of finding alternative export routes [to the Strait of Hormuz] and ensure the smooth movement of Iraqi oil tankers.”
The Strait, a strategic waterway through which at least one-fifth of global oil supplies pass, has been subject to tit-for-tat restrictions between the United States and Iran since the outbreak of the six-week war on February 28, which was temporarily halted on April 8 through a Pakistani-brokered ceasefire.
Less than a week after the ceasefire, the US government in mid-April imposed a blockade on vessels arriving at and departing from Iranian ports, effectively preventing Iran from exporting oil and forcing it to significantly reduce production.
Iran responded by impeding naval traffic in the Persian Gulf and the Gulf of Oman, tampering with vessel navigation signals, imposing unofficial taxes, and targeting ships that do not comply with its “instructions” or fail to obtain “permission” to pass.
Amid the maritime escalation, Iraqi oil exports dropped to 18.6 million barrels in March, generating about $1.96 billion in revenue, compared with more than 99 million barrels and $6.81 billion in February, according to figures provided by Baghdad’s oil ministry.
For his part, the newly-appointed Oil Minister Bassim Mohammed Khudair also ordered “the immediate passage of a fixed five-year budget to shield long-term energy infrastructure from political and regional shocks,” the state-run Iraqi News Agency (INA) reported on Wednesday.
Khudair reviewed active foreign investments, including TotalEnergies’ ongoing gas capture initiatives and the Basra Sun solar project, while the Iraqi foreign ministry outlined its latest diplomatic efforts to finalize overland crude trucking agreements with neighboring states, INA said.
“The ministry represents the primary artery of the Iraqi economy,” the ministry said in a statement, noting that Zaidi stressed the need to safeguard revenues “particularly given the critical phase the region is currently undergoing.” The statement added that the premier ordered officials to “expedite the process of finding alternative export routes [to the Strait of Hormuz] and ensure the smooth movement of Iraqi oil tankers.”
The Strait, a strategic waterway through which at least one-fifth of global oil supplies pass, has been subject to tit-for-tat restrictions between the United States and Iran since the outbreak of the six-week war on February 28, which was temporarily halted on April 8 through a Pakistani-brokered ceasefire.
Less than a week after the ceasefire, the US government in mid-April imposed a blockade on vessels arriving at and departing from Iranian ports, effectively preventing Iran from exporting oil and forcing it to significantly reduce production.
Iran responded by impeding naval traffic in the Persian Gulf and the Gulf of Oman, tampering with vessel navigation signals, imposing unofficial taxes, and targeting ships that do not comply with its “instructions” or fail to obtain “permission” to pass.
Amid the maritime escalation, Iraqi oil exports dropped to 18.6 million barrels in March, generating about $1.96 billion in revenue, compared with more than 99 million barrels and $6.81 billion in February, according to figures provided by Baghdad’s oil ministry.
For his part, the newly-appointed Oil Minister Bassim Mohammed Khudair also ordered “the immediate passage of a fixed five-year budget to shield long-term energy infrastructure from political and regional shocks,” the state-run Iraqi News Agency (INA) reported on Wednesday.
Khudair reviewed active foreign investments, including TotalEnergies’ ongoing gas capture initiatives and the Basra Sun solar project, while the Iraqi foreign ministry outlined its latest diplomatic efforts to finalize overland crude trucking agreements with neighboring states, INA said.
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