Iraq Seeks Diversified Oil Exports Amid Strait of Hormuz Blockade
Iraqi Prime Minister Ali al-Zaidi has been meeting with European leaders to diversify his country's oil outlets, citing the blockage of the Strait of Hormuz as a major concern. The strait, which is a key passage for Gulf hydrocarbons, has been blocked by Iran in retaliation for American and Israeli strikes. Al-Zaidi believes that Iraq cannot remain reliant on a single corridor and wants to expand its export routes to include European markets.
During his visit to Germany, al-Zaidi met with Chancellor Friedrich Merz and announced an agreement on electricity supply to Iraq. The German dimension of the deal links discussions on Iraqi crude flows to Europe with the country's persistent needs in the power sector. Al-Zaidi also stated that Baghdad would purchase German technology and equipment in exchange for crude oil exports.
In France, al-Zaidi met with President Emmanuel Macron and agreed to launch discussions on several energy projects with TotalEnergies. The objectives of these projects include increasing Iraqi oil production, improving energy efficiency, achieving energy sovereignty, and supporting the country's energy transition. Iraq's crude oil sales account for nearly 90% of its revenue, making it essential to diversify export routes.
Al-Zaidi has expressed ambitions to raise national production to 10 million barrels per day, with a significant portion destined for European and Western countries. He believes that Baghdad can double its oil exports via the Mediterranean to serve these markets.