Iraq approves new crude oil export mechanism to bypass the Strait of Hormuz, effective from September 1

(1) On the 18th, the Iraqi government approved a new crude oil export mechanism, allowing exports through multiple ports via specialized international and local companies, in order to bypass the obstructed Strait of Hormuz. (2) Export contracts under the new mechanism will take effect from September 1 for a duration of three months, but the government has not yet announced details such as the selected companies, planned export volumes, or specific export ports. (3) Before the war, Iraq’s daily production was about 4 million barrels, and monthly exports were approximately 105 million barrels, most of which were shipped via the Basra Oil Terminal in the south through the Strait of Hormuz; following the obstruction of the Strait, Iraq is ramping up the development of alternative export routes via Turkey and Syria to reduce its reliance on the Gulf shipping lanes.