Iran Opens Strait of Hormuz to Iraqi Oil Tankers Amid Shipping Disruptions

Iran has authorized Iraqi oil tankers to transit the Strait of Hormuz after repeated requests from Baghdad, according to Iran's state-run Islamic Republic News Agency (IRNA). The move was a key demand during Iranian Parliament Speaker Mohammad Baqer Qalibaf's visit to Baghdad. Iraqi President Nizar Amedi stated that Iran had facilitated the passage of vessels carrying Iraqi crude through the Strait in recent days.

Iran's decision comes as Iraq has been severely impacted by disruptions to shipping through the strategic waterway, which is a critical route for moving oil to international markets. With exports through Hormuz constrained, Baghdad is exploring alternative routes, including increasing shipments through Türkiye's Ceyhan port and seeking to begin exports via Syria's Baniyas port and Jordan's Aqaba port.

Before the Iran war, Iraq produced around 4 million barrels of oil per day (mmbbl/d). The developments highlight Iraq's heavy dependence on the Strait for moving its crude to international markets and Baghdad's efforts to secure alternative export channels amid continued disruption to shipping through Hormuz.