Iraq’s Oil Exports through Strait of Hormuz Drop to 10 Million Barrels

Iraq exported just 10 million barrels of crude oil through the Strait of Hormuz in April, down sharply from nearly 93 million barrels per month before the outbreak of the Iran-Israel conflict, Iraq’s newly appointed Oil Minister Bassem Mohammed revealed on Saturday, underscoring the severe disruption shaking Gulf energy supply chains.

The dramatic decline highlights one of the most significant shifts in global oil flows since tensions escalated across the region, with maritime traffic through one of the world’s most strategic energy corridors increasingly constrained by security risks and soaring insurance costs.

According to the Iraqi minister, the slowdown stems directly from disruptions affecting oil tanker movements in the Gulf. Shipping insurers have become increasingly reluctant to cover cargoes navigating the volatile waterway, leading to a steep reduction in the number of vessels entering the region.

The Strait of Hormuz, a critical artery for global crude exports, has long served as a lifeline for Gulf producers, including Iraq. Any sustained disruption threatens to reverberate across international energy markets, intensifying price volatility and raising concerns over long-term supply stability.

Despite the export challenges, Iraq continues to produce approximately 1.4 million barrels of oil per day, the minister said, while emphasizing that Baghdad is actively pursuing alternative export channels to reduce reliance on vulnerable maritime routes.

In a major step toward diversification, oil exports through the Kirkuk-Ceyhan pipeline resumed in March following an agreement between the federal government in Baghdad and the Kurdistan Regional Government. Iraq is currently exporting around 200,000 barrels per day through Turkey’s Ceyhan port, with plans underway to increase volumes to 500,000 barrels daily in the coming phase.

The renewed pipeline operations are seen as part of a broader Iraqi strategy to shield its economy from geopolitical shocks and secure more stable access to international markets.

Iraq is also engaged in negotiations with Turkey to establish a new framework for energy cooperation extending beyond crude exports to include upstream and downstream sectors, signaling a potential expansion of bilateral energy infrastructure ties.

Simultaneously, Baghdad has opened discussions with major international energy companies including Chevron, ExxonMobil, and Halliburton over new oil and gas development projects aimed at boosting revenues and enhancing medium-term production capacity.

Officials say the government is seeking to strengthen Iraq’s long-term position in global energy markets despite mounting regional instability.

The Iraqi oil minister also confirmed ongoing discussions with OPEC regarding the country’s production ambitions, stating that Baghdad aims to raise its production and export capacity to five million barrels per day in the coming years.

He stressed that Iraq has no intention of leaving OPEC or the broader OPEC+ alliance, reaffirming support for the group’s role in maintaining market stability and sustaining what he described as “acceptable” price levels amid ongoing debates over supply management and global demand forecasts.