Iraq targets 10 million barrels of oil exports per day

Iraq is targeting a significant increase in its oil exports, aiming to reach between 8 and 10 million barrels per day within the next six years, according to Prime Minister Ali Al-Zaydi. This ambitious goal is driven by the nation's heavy reliance on oil revenues, which account for approximately 90% of its income, and the severe economic impact of the ongoing Middle East war.

Al-Zaydi stated that Iraq, a founding member of OPEC, has recently requested the organization to raise its production quota. This plea comes in the wake of Iran's repeated restrictions on the Strait of Hormuz, a vital chokepoint for global energy supplies, which has severely hampered Iraq's oil exports. Before the recent escalation of the conflict, Iraq was producing around four million barrels daily, with most exports passing through the Strait of Hormuz.

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We are working to increase Iraq's export share through "OPEC." We aim to reach 8 to 10 million barrels per day within 6 years.

The closure of the Strait of Hormuz presents a major challenge, Al-Zaydi acknowledged. Consequently, the Iraqi government is actively working to expand oil exports through alternative routes, including the port of Ceyhan in Turkey and via pipelines and tankers through Syria and Jordan. Despite the disruptions, Iraqi oil exports saw a slight recovery in July, with nearly 30 million barrels passing through the Strait of Hormuz, and the first half of August saw an average of two million barrels exported daily, the highest level since the war began.

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The closure of the Strait of Hormuz represents a major challenge.

Iraq's economy is heavily dependent on foreign currency from oil sales to finance imports, stabilize the dinar, and pay public sector salaries. Al-Zaydi assured that salaries and government payments are secure. The country is also pursuing a long-term strategy to diversify its economy, aiming to increase non-oil revenues from 10% to 45% by 2037.

In parallel, the Speaker of the Iraqi Parliament, Hibat Al-Halbusi, has urged his Iranian counterpart, Mohammad Bagher Ghalibaf, to grant Iraq special consideration regarding oil exports through the Strait of Hormuz. This diplomatic effort underscores the critical importance of stable oil exports for Iraq's economic stability and recovery amidst regional turmoil.

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Let Iraq have a special status regarding oil exports through the Strait of Hormuz.