Iraq seeks new oil export routes amid economic crisis

Iraq is seeking new routes for oil exports to mitigate economic damage caused by instability in the Strait of Hormuz. Prime Minister Ali al-Zaidi addressed the Council of Ministers, noting that the disruption of maritime trade and oil exports poses a severe threat to the national economy.

Iraq has reportedly lost approximately $60 billion in oil revenue since the onset of the conflict. With 90% of the state budget dependent on oil income, the government is struggling to pay salaries, leading to protests in Baghdad. Furthermore, nearly 90% of oil exports through Gulf nations have ceased.

To diversify export paths, Iraq has signed a one-year agreement with Turkey to export approximately 750,000 barrels of oil per day via the Ceyhan pipeline. While discussions regarding transit through Syria and Jordan have occurred, security officials noted these are not immediate or practical solutions. Iraq faces increased competition in the international market, as competitors like Kuwait and Qatar offer significant discounts.