Iraq Orders Oil Companies to Operate Round the Clock Amid Strait of Hormuz Crisis

Iraqi Prime Minister Ali Al-Zaidi has ordered oil companies to operate around the clock to sustain production and boost exports, amid the ongoing crisis in the Strait of Hormuz. The closure of this major shipping route is severely restricting crude shipments and affecting Iraq's finances.

At a recent Oil Ministry meeting, Al-Zaidi called for faster pipeline upgrades, alternative routes, and contracts with international companies to market Iraqi oil. He also urged officials to use the crisis as an opportunity to accelerate infrastructure projects and reduce dependence on Hormuz.

'Every barrel of oil left unsold means a delay in salaries or public services and a loss to the state treasury,' Al-Zaidi stated, emphasizing that officials should deliver solutions rather than explanations. With Iraq being OPEC's second-largest oil producer, accounting for about 90% of federal revenue from crude exports, disruptions in Hormuz have significant consequences.

The country's Oil Minister Basim Al-Abadi reported that Iraq's crude exports stood at approximately 49 million barrels in July, with daily shipments averaging around two million bpd since the beginning of August. This is the highest level since the regional crisis began.