Iran Authorizes Iraqi Oil Tankers Through Hormuz
At a Glance
- Iran grants special passage permits after Baghdad pressed Tehran for exemptions
- Iraqi oil exports faced major disruption and revenue losses that strained the state budget
Iran has officially authorized Iraqi oil tankers to pass through the Strait of Hormuz, following repeated diplomatic requests from Baghdad as the closure of the strategic waterway disrupted Iraq’s crude exports and government revenues.
Key Statements and Focus Area
- Iranian authorization: IRNA reported that Tehran granted special permits for Iraqi oil tankers to pass through the restricted waterway after securing safe passage for Iraqi oil tankers was a key demand during Iranian Parliament Speaker Mohammad Bagher Ghalibaf’s visit to Baghdad.
The authorization provides Iraq with an exception to the restrictions affecting oil shipments through the strategic strait.
The closure of the Strait of Hormuz had brought the export of an estimated 3 million to 3.5 million barrels of Iraqi crude oil per day to a halt.
Iraq was forced to rely on alternative routes, including overland pipelines and oil trucks moving through Turkey and Syria. The disruption reduced Iraqi exports to record lows.
The decline in oil exports has placed significant pressure on Iraq’s public finances.
The loss of oil revenue has made it more difficult for the central government to secure funding for public salaries and the state budget. Baghdad is also working to secure domestic and foreign loans to address the deficit created by the export freeze.
The special passage permits could allow Iraq to resume part of its oil deliveries through the Strait of Hormuz and ease some of the financial pressure caused by the disruption.
FYI
Iran’s enforcement of a total commercial shipping closure across the Strait of Hormuz has severely disrupted international trade, though the recent issuance of exclusive maritime permits for Iraqi tankers offers a critical economic lifeline to Baghdad.
Globally, the blockade represents a major escalation following the collapse of the 60-day Islamabad de-escalation memorandum, heavily choking off the flow of a vital choke point where a massive portion of the world's petroleum passes daily.
For Iraq, this maritime freeze was economically devastating, completely choking off its primary southern export route and trapping up to 3.5 million barrels of crude oil per day. Forced to rely on limited land pipelines through Turkey and Syria, Baghdad faced a massive revenue deficit that directly threatened public payrolls and state budget planning.
However, following intensive diplomatic pressure and direct talks with Iranian Parliament Speaker Mohammad Bagher Ghalibaf during his high-level visit to Baghdad, Tehran officially granted special passage clearances.
These unique security permits now allow Iraqi tankers to safely navigate the blockaded waterway, directly helping the government of Prime Minister Ali Faleh al-Zaidi revive its vital oil revenues and stabilize its fragile financial sector.
Dive Deeper: Handpicked Stories for You
Follow Channel8 for continuous updates:
Iraqi Premier Al-Zaidi Meets Iranian Parliamentary Speaker Ghalibaf
1 hour ago