Iran allows limited Iraqi oil shipments through Hormuz
Iran has granted permission for some Iraqi oil tankers to transit the Strait of Hormuz, following requests from Baghdad. Iraqi President Nizar Amidi confirmed the passage and said Iraq will not allow its territory to be used for attacks. The strait's closure has had severe economic repercussions for Iraq and the world.
The permission applies only to select Iraqi tankers and follows direct diplomatic exchanges, including Iranian parliament speaker Mohammad Bagher Ghalibaf's visit to Baghdad this week. Iraqi President Nizar Amidi confirmed the recent transits while emphasizing that Iraq will not serve as a launchpad for attacks against regional states, reiterating Baghdad's position at the Baghdad Dialogue conference.
Iraq's oil sector has been severely disrupted by the strait's effective closure, with pre-war production around 4 million barrels daily. Tehran remains in negotiations with Oman over broader reopening arrangements, though no deal has been reached. Iran's decision appears tied to Iraq's refusal to host US military operations, contrasting with Gulf states that have allowed American forces to use their bases. Baghdad is also pursuing alternative export routes through Turkey's Ceyhan port.
This selective exemption could ease immediate economic strain on Iraq's oil-dependent budget, though broader regional instability persists. Other nations may pressure Iran for similar treatment, potentially creating a patchwork of exceptions that undermines the blockade's effectiveness. Global energy markets could see modest relief if Iraqi shipments resume at scale, but the unresolved US naval blockade and continued attacks in the strait mean shipping risks remain elevated, affecting insurers, traders, and consumers worldwide.