Iraq seeks to redirect oil exports away from conflict zones

Iraq is trying to reroute its oil exports through neighboring countries as the Strait of Hormuz crisis continues to hit an economy heavily dependent on crude revenue.

Mazhar Mohamed Saleh, an adviser to Prime Minister Ali al-Zaidi, told the official Iraqi News Agency that pipelines and alternative sources formed part of a state policy to redirect oil marketing toward destinations away from geopolitical conflicts.

Iraq is the Organization of the Petroleum Exporting Countries’ second-largest producer. Before the war, it exported 3.4 million barrels of oil a day. The government says the crisis caused exports to fall by more than half, while oil accounts for about 85% of state revenues.

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The issue of pipelines and the search for alternative sources are part of the state's approach to redirecting oil policy and marketing toward other destinations away from geopolitical conflicts.

Between 80% and 85% of Iraqi oil had been transported through the Strait of Hormuz before the war in Iran began on February 28, according to the article. Iraq is among the countries most affected by the blockade of the strategic waterway.

Saleh said Iraq would prepare to export oil through neighboring territories if the blockade continued, although he did not specify which countries. He said the new government had adopted a policy different from that of the past and had moved from resisting the crisis to “coexisting with and containing it”.

The Iraqi government approved mechanisms in mid-August to export oil through specialized international and local companies. The plans also include corridors passing through countries such as Jordan and Syria.

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Iraq has moved from the phase of repelling the crisis to the phase of coexisting with and containing it.