Iraq Ships Oil Past Hormuz Amid War Tensions

Iraq has begun shipping its oil past the Strait of Hormuz for the first time in decades, as tensions with Iran have disrupted traditional export routes. The state-run Iraqi Oil Tankers Company shipped two million barrels of crude on a Very Large Crude Carrier (VLCC) to outside the strait, said director general Ali Qais. This move is part of Iraq's strategy to diversify its oil sales and take advantage of better pricing opportunities.

The war with Iran has severely impacted Iraqi exports, which have been significantly reduced since February. Most of Iraq's oil exports went through the Strait of Hormuz before the conflict began, but this route has become too risky due to missile and drone attacks, insurance spikes, and naval confrontations.

Iraq's oil minister Bassim Khudair announced plans to increase export capacity to five million barrels per day after the completion of strategic pipelines extending to Fishkhabour and Baniyas. The Iraqi Oil Tankers Company is now in talks to purchase its own VLCCs to compete with regional peers.