Iraq Approves New Oil Export Mechanisms Starting September 2026

The Iraqi government has approved new mechanisms for exporting crude oil, effective from September 1, 2026. According to a report by WAM news agency, the Council of Ministers, chaired by Prime Minister Ali Faleh Al-Zaidi, endorsed recommendations for purchasing crude oil at either the price set by the State Organisation for Marketing of Oil (SOMO) or the federal budget price, whichever is lower, with a 30% discount determined annually. Payments will be made to the Public Treasury, and financial implications will be reviewed in detail.

The Council also approved exceptional measures to boost export and import capacities, authorizing the Minister of Oil to establish additional transportation routes for existing contracts and to renew them. The minister is also empowered to approve petroleum product imports when necessary to ensure stable supplies and prevent crises.