Iraq has reached an understanding with the United States that will allow the country to export oil through the Strait of Hormuz via a shipping corridor near Oman. This was stated by Iraqi Foreign Minister Fuad Hussein in an interview with „Al Jazeera“, cited by Reuters.
According to Hussein, Iraq’s losses due to the war between the US and Iran and disruptions to oil supplies have reached around $60 billion. The minister did not announce exactly when implementation of the understanding would begin, nor did he publicly provide details on the rules governing tanker traffic.
Iraq relies heavily on the maritime route through the Strait of Hormuz. Around 90 percent of the oil exported by the country normally passes through the strategic waterway, while oil revenues provide approximately 90 percent of the federal budget. Iraq has already received an exemption from Iran allowing its tankers to pass through the strait.
Disruptions to shipping directly affected export volumes. According to data from Iraqi energy officials cited by Reuters, the country exported around 2.65 million barrels of oil per day in September. In October, the figure rose to approximately 3.5 million barrels per day.
Baghdad is trying to maintain relations with both the US and Iran while avoiding being drawn into the military conflict. „We are not part of any axis and we do not want the Iraqi arena to turn into a battlefield“, Hussein said in an earlier interview. He also warned Iraqi armed groups not to join a possible Iranian response to US actions.
The understanding on the corridor near Oman is intended to provide a more predictable route for Iraqi oil amid continuing tensions around the Strait of Hormuz. At present, the publicly confirmed information is limited to the agreement between Baghdad and Washington and the indication of the route; no specific deadlines have been announced for the full restoration of exports.
Sources: thestar.com.my, aljazeera.com