Iraq is taking proactive measures to ramp up its oil exports as soon as the Strait of Hormuz reopens, following an interim agreement between the US and Iran. The country has been preparing its pumping stations and pipelines to handle a major surge in crude volume, with the goal of quickly boosting its daily export capacity. This strategic move is intended to allow Iraq to regain lost market share and benefit from the stabilization of global oil prices.
According to Iraqi oil officials, the preparations include optimizing logistics at its key southern terminals, such as Basra. They are anticipating significant demand from buyers eager to secure crude from the region after the protracted blockade. Iraq aims to quickly increase its export volumes to pre-blockade levels and potentially beyond, capitalising on the lifting of restrictions.
This comes as other regional players are also preparing for the reopening. The deal between the US and Iran, which is expected to be signed on Friday, will allow Iran to sell its oil freely and includes provisions for the Strait of Hormuz to return to pre-war traffic levels within 30 days. For Iraq, resuming full export capabilities through this vital waterway is crucial for its national revenue and economic stability.
