Iran Lifts Strait of Hormuz Restrictions for Iraqi Oil Tankers

Iran has officially exempted Iraq, the second-largest oil producer in OPEC, from all shipping restrictions imposed on the Strait of Hormuz. The announcement was made by an Iranian military representative in an Arabic-language video address published by a state news agency.

"Brotherly Iraq is exempt from any restrictions we imposed in the Strait of Hormuz," the statement declared.

This decision could potentially allow Iraq to increase its crude oil exports to up to three million barrels per day. However, the practical impact remains uncertain and will depend on shipping companies' willingness to navigate the strait while security risks persist. It is also unclear whether this exemption applies to all Iraqi oil exports or only to vessels flying the Iraqi flag.

The move comes as maritime traffic through this critical chokepoint has begun a gradual recovery following a sharp decline at the start of recent regional hostilities. Prior to the conflict, approximately one-fifth of global oil and liquefied natural gas supplies passed through the Strait of Hormuz.

In the initial weeks of the war, Iraq and other key Gulf producers were forced to drastically cut production after their primary export route was effectively closed, leading to storage facilities reaching full capacity. By March, Iraq's seaborne oil exports had plummeted by roughly 97%, falling to just 99,000 barrels per day, with most shipments rerouted via a pipeline through Turkey to Ceyhan port.

While Tehran's decision opens a path for a partial recovery of Iraq's maritime shipments, significant challenges remain. These include a shortage of available tankers and broader uncertainty about increasing fuel production levels. Iran had previously announced a halt to cargo traffic through the strait at the onset of the conflict five weeks ago, currently permitting passage only for vessels from nations it considers friendly.