Full Breakdown
Iraq’s Oil Exports Plummet as Hormuz Closure Forces Land-Route Shift
5/17/2026, 6:42:09 AM
Sharp Decline in Hormuz Exports
In April 2026 Iraq shipped 10 million barrels of crude through the Strait of Hormuz, down from 93 million barrels per month before the conflict, according to Oil Minister Basim Mohammed.
War-Induced Closure of the Strait and Regional Impact
The strait was closed after the Iran war, described as a US-Israeli campaign against Iran. The blockade halted oil exports from Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, pushing global oil prices higher.
Alternative Land Routes: Kirkuk–Ceyhan Pipeline and Ceyhan Port
After a March agreement between Baghdad and the Kurdistan Regional Government, the Kirkuk–Ceyhan pipeline resumed. Iraq now ships roughly 200,000 bpd through Turkey’s Ceyhan port, with a target of 500,000 bpd. Ankara talks aim to expand cooperation to upstream and downstream projects.
Key Numbers: Production, Export Volumes and Revenue
Iraq produces 1.4 million bpd. April’s Hormuz shipments of 10 million barrels contrast with pre-war monthly levels of 93 million barrels and an estimated 100 million in February. March exports fell to 18.6 million barrels, generating under $2 billion versus $6 billion a month earlier. The ministry seeks a total capacity of 5 million bpd and higher export ceilings through OPEC.
Official Statements from Iraq and International Actors
Minister Mohammed said low Hormuz exports stem from insurance-driven tanker avoidance and urged U.S. firms Chevron, ExxonMobil and Halliburton to engage. He highlighted an OPEC dialogue to raise Iraq’s export ceiling and projected significant fiscal gains. Iraqi officials have opened talks with the IMF and World Bank for loans. President Trump said Chinese President Xi Jinping agreed Tehran must reopen the waterway.
Conflicting Reports and Information Gaps
Sources give different pre-war export totals, citing 93 million and “nearly 100 million” barrels per month. March export figures appear as 18.6 million barrels in one report and 10 million barrels for April in another, leaving the monthly trend unclear. Insurance cost details, a timetable for strait reopening, and exact IMF-World Bank loan terms are not disclosed.
Verbatim Quotes
- “Exports through the Strait of Hormuz are low and depend on the arrival of oil tankers, which are not entering because of insurance” — Basim Mohammed, Iraq Oil Minister
- “We export 200,000 barrels through Ceyhan port, and we have a plan to increase it to 500,000 barrels,” — Basim Mohammed, Iraq Oil Minister
- “We have a dialogue with OPEC to increase Iraq’s export capacity. When exports increase and the ceiling opens up with OPEC, we will bring in significant financial revenues for Iraq,” — Basim Mohammed, Iraq Oil Minister
- “Iraq used to export 93 million barrels per month through the Strait of Hormuz, but in April we exported only 10 million barrels due to the war,” — Basim Mohammed Khudair, Iraq Oil Minister
Future Outlook: OPEC Dialogue, IMF Talks and Potential Reopening
Iraq will use OPEC talks to raise its export ceiling and attract oil investment. IMF and World Bank loan discussions aim to offset the fiscal shortfall from reduced Hormuz shipments. The minister said reopening the strait could let Iraq boost production to three million bpd within a week, highlighting the United States and China’s role in restoring maritime traffic.
