Iraq's oil exports have seen a substantial rebound, reaching 2 million barrels per day (bpd) since the beginning of August. This increase follows a period of disruption caused by the Iran war in late February, which severely impacted shipping through the Strait of Hormuz. Before the conflict, Iraq exported around 106 million barrels per month, but this plummeted to 18.6 million barrels in March, generating only $1.96 billion in revenue, down from over 99 million barrels and $6.81 billion in February.
The improved export figures are partly due to Iran granting special permission for Iraqi oil tankers to pass through the Strait of Hormuz, a critical route for 90% of Iraq's oil exports. This permission was secured after repeated requests from Baghdad, including during a visit by Iranian parliament speaker Mohammad Baqer Qalibaf to Iraq. Iraqi President Nizar Amedi confirmed that Iran has facilitated the passage of vessels carrying Iraqi oil through the Strait in recent days.
In addition to the official permissions, Middle Eastern oil producers have been engaging in covert shipments through the Strait of Hormuz, transferring crude onto tankers in the Gulf of Oman to stabilize global crude prices. This clandestine trade has been operating at full capacity despite recent attacks on vessels. Total observed shipments of Iraqi oil exiting Hormuz or loading at Basra have reached about 7 million barrels so far this month, matching the total volumes shipped in April and May, indicating a significant acceleration in loadings. The Iraqi Oil Ministry is actively working to maximize exports, with more than 85% of the country's budget reliant on these revenues.
