WANA (Aug 04) – Iraq’s Ministry of Oil confirmed Tuesday that crude oil tankers have passed through the Strait of Hormuz, following statements by the Iraqi Oil Minister regarding talks with Tehran to facilitate exports and increase sales rates.

 

Ministry spokesperson Salim Al-Rikabi stated that the ministry continues to sell crude oil under a “Free on Board” mechanism at the port. Under this mechanism, buyers take full responsibility for cargo transport, required transit permits, and vessel routing after leaving the port. Al-Rikabi emphasized that the ministry does not own the tankers and has no connection to their movement once they depart.

 

He noted that some vessels carry up to two million barrels of crude oil, with movements monitored via international tracking systems and the State Organization for Marketing of Oil (SOMO) tracking delivery to refineries. Al-Rikabi added that sales performance has gradually improved in recent months compared to the period following the Strait of Hormuz export crisis.

 

Meanwhile, Iraqi Oil Minister Basem Mohammed Khudair announced Monday night during an interview with the Iraqi News Agency that negotiations were held with Iran during a delegation visit to Tehran with the Prime Minister.

 

Khudair expressed hope that major understandings would be reached in the coming days to help protect and facilitate the passage of tankers and shipments.

 

He noted that the government’s approach focuses on building partnerships and joint investments with neighboring countries, adding that financial revenues from increased exports will be directed toward infrastructure, health, education, roads, and human resources.

 

According to official data, Iraq’s oil export capacity prior to the start of the regional conflict on February 28, 2026, was approximately 3.5 million barrels per day (bpd), mostly routed through the Strait of Hormuz. Following the closure of the strategic waterway, Iraq’s maritime exports dropped to around 260,000 bpd in May 2026—about 8% of its 2025 average.

 

According to Mudher Saleh, economic advisor to the Prime Minister, monthly oil revenues fell from $7–8 billion to around $1.5 billion, with total estimated losses reaching $40–45 billion by the end of June 2026.

 

Khudair also announced plans to transport a portion of southern field crude through the northern Kirkuk-Ceyhan pipeline, stating that an agreement signed with Turkey on August 1 extends oil understandings for one year while a long-term framework is drafted.

 

The agreement aims to ensure continued crude exports from the Kurdistan region and transport southern oil to achieve export rates exceeding 700,000 bpd.

 

However, international analysts express serious skepticism regarding these plans. Goldman Sachs estimates that pipeline construction within a single country takes at least two and a half years, with cross-border projects facing even greater challenges.

 

Experts also note that overland pipeline exports remain more expensive, less efficient, and vulnerable to potential attacks compared to maritime transport. Analyst Christine Ronsi of RANE Network emphasized that an economic recovery for Iraq is unlikely in the coming months, leaving the country heavily dependent on the Strait of Hormuz for the foreseeable future.