Iraq looks for oil export alternatives to the troubled Strait of Hormuz
The continued blockade of the Strait of Hormuz has forced Iraq to look for alternatives to export its oil.
In his speech at the United Nations General Assembly (UNGA) on Friday, Iraq’s Prime Minister Ali al-Zaidi spoke about the challenges his country has faced amid the ongoing war between the United States and Iran.
The closure of the Strait of Hormuz has cut off Iraq’s sea-based trade, including oil exports – a lifeline for the country.
Iraq has been unable to export about 90 percent of its oil via the Gulf and has lost $60bn in oil revenues since the war began.
Ali Nazar, the head of Iraqi Oil Marketing Organisation (SOMO), told a recent session in the Iraqi parliament that Iraq’s oil export capacity was 4.2 million barrels in September, but actual average exports were much lower at 2.5 million barrels. Before the crisis in the Strait of Hormuz, Iraq was exporting 3.5 million barrels per day.