Iraq: Oil exports could reach 3.4 million barrels per day if the Strait of Hormuz is reopened.

Iraq could restore oil exports to approximately 3.4 million barrels per day within a week, if the war with Iran ends and traffic through the Strait of Hormuz is resumed, said Bassem Abdul Karim, director of the state-owned Basra Oil Company. Currently, production from the oil fields in southern Iraq is about 900,000 barrels per day, but this has drastically decreased by 80% last month due to the blockade of exports.

The Strait of Hormuz is crucial, considering that about one-fifth of global oil flows pass through it. Abdul Karim emphasized that, although Iran has offered verbal guarantees for the passage of Iraqi oil tankers, no official document has been received. U.S. President Donald Trump has threatened severe reprisals against Iran if an agreement is not reached to resume traffic.

Before the conflict, Iraq produced about 4.3 million barrels per day, and now, to cover domestic demand, Basra Oil Company is sending 400,000 barrels per day to northern Iraq. Drone attacks on oil facilities have caused significant losses, affecting the continuity of production.