Iraq Adopts FOB Sales Method Amid US-Iran Conflict

Iraq has implemented a new sales strategy for its oil exports to ensure continuity amid the ongoing US-Iran conflict. According to Salim al-Rikabi, the spokesperson for Iraq's Oil Ministry, the country is adopting the Free on Board (FOB) method, where crude oil is sold directly at southern ports.

This change aims to transfer transit risks to buyers and sustain maritime exports, which have gradually recovered from a sharp decline in recent months. Before the conflict, Iraq produced over 4.5 million barrels of oil per day, but output dropped significantly due to shipping disruptions through the Strait of Hormuz.

Rikabi stated that export volumes are increasing, with an average of 2.2 million barrels per day, up from a low of 200,000 barrels in earlier months. Total exports for August reached 70 million barrels.