Iran War Day 36 Iraq's Oil Industry Continues To Be Threatened Financial Crisis By May

The U.S. or Israel bombed the Shalamcheh border crossing between Basra and Iran on the Iranian side. An Iraqi civilian was killed as a result along with five others being wounded.

 

Kataib Hezbollah’s 45^th Hashd Brigade was targeted in Qaim, Anbar leading to one death and four injured plus a Defense Ministry officer was wounded as well. Kataib al-Tayar al-Risali’s 31^st Hashd Brigade was struck in Siniya, Salahaddin. The Turkmen 52^nd Hashd Brigade received an airstrike in the same province. These are all members of the pro-Iran Resistance except for the government officer.

 

Iraq’s oil industry continues to be threatened. Two drones hit the Rumaila oil field in Basra wounding three Iraqi workers and setting a storage facility on fire. The Buzurgan field in Maysan was struck by six drones and targeted the Chinese National Offshore Oil Corporation that runs it. Tehran is attempting to raise petroleum prices to pressure President Trump to end the war.

 

The Kurdistan Regional Government issued another report on how it has become the main victim of the Iran War in Iraq. It counted 638 attacks upon Kurdistan since the start of the war which led to 14 deaths and 93 wounded. Irbil province has seen the brunt of attacks with 507, followed by 104 in Sulaymaniya, 25 in Dohuk and 2 in Halabja. The Kurds are being punished for their relationship with the United States.

 

Tehran offered Baghdad a fig leaf by saying that ships contracted by it could pass through the Strait of Hormuz. No details were offered on how this would work or when it would begin so it may just be words. Iraq is the most oil dependent country in the world and almost all of its exports have been shuttered due to the closure of the strait.

 

Alternative export routes have been established but they are not a real relief. The Syrian Petroleum Company said that 500,000 metric tons of fuel oil per month will be sent to Baniyas for export through the Mediterranean sea. The first convoy of 299 tanker trucks had been sent. If that initial deal works than a longer term deal will be made. Damascus also said it could buy fuel oil from Iraq if it is given a competitive price. The sale of fuel oil is important to keep Iraq’s refineries operating at near capacity.

 

Economic expert Nabil al-Masourmi told Al Alam that Iraq only has one month before it is in serious financial trouble. He said in March Baghdad only earned $1.9 billion from oil sales. This is a lower figure than a previous report which said Iraq made $2 billion that month. By May it won’t have enough cash to cover its bills.

 

Moqtada al-Sadr who has been largely absent from public after failing to form a new government after the 2022 elections showed his political power by calling out thousands of his followers across the country to protest against the war. There were large demonstrations in Babil, Baghdad, Basra, Karbala, Kirkuk, and Qadisiya.

 

Finally, Tehran has been sporadically cutting off natural gas exports to Iraq during the war. Baghdad relies upon Iran for up to 40% of its electricity production. On March 1 Iran stopped supplying Iraq as the war began. It then restarted exports on March 15, only to halt them on March 18, open the tap on March 21, and then partially close it down on April 4. Currently southern Iraq is receiving no gas while the center still is but at reduced amounts. This is causing chaos with Iraq’s power grid as its production is constantly going up and down with each move by Iran emphasizing how dependent Baghdad is upon its neighbor.

 

SOURCES

 

Al Alam, “Revenue Catastrophe: Oil “Trapped” in the Strait of Hormuz and “Suspended” Salaries Awaiting the “May Shock,”” 4/4/26

 

Asharq al-Awsat, “Fire Reported at Foreign Oil Companies’ Storage Facilities in Iraq after Drone Strike,” 4/4/26

- “Strike Kills One Iraqi Fighter near Syria Border,” 4/4/26

- “Tens of Thousands of Sadr Supporters Rally in Baghdad Against War,” 4/4/26

 

Kurdistan 24, “Iran Exempts Iraq from Hormuz Blockade Amid Drone Strike on Israel-Linked Ship,” 4/4/26

- “Iranian Gas Exports to Southern Iraq Halted, Sparking Energy Supply Concerns,” 4/4/26

- “Iranian Gas Supply to Iraq Halts, 3,100 MW Power Loss Reported,” 3/18/26

 

Middle East Monitor, “Syrian Petroleum says 500,000 tons of Iraqi fuel to transit monthly to Baniyas,” 4/4/26

 

NINA, “A demonstration by the Sadr movement in Babylon against the American-Zionist war on Iran,” 4/4/26

- “A massive demonstration by followers of the Sadr movement in Basra to condemn the Zionist-American aggression against the Iranian and Lebanese peoples," - “Thousands of followers of the Sadr movement are demonstrating in Karbala,” 4/4/26

- “Thousands in Kirkuk demonstrate in response to al-Sadr's call to condemn the American-Zionist aggression against Iran,” 4/4/26

- “Thousands of supporters of the Sadr movement are demonstrating in the center of Diwaniyah to condemn the American and Israeli aggression against Iran and Lebanon,” 4/4/26

 

Reuters, “Iranian gas to Iraq resumes after South Pars attack, Iraqi state news agency says,” 3/21/26

- “Iraq-Iran border crossing at Shalamcheh back to normal after closure due to attacks,” 4/4/26

- “Three workers wounded in drone strike on Iraq’s North Rumaila oilfield, sources say,” 4/4/26

 

Rudaw, “Kurdistan Region hit by 638 drones, missiles since start of Iran war,” 4/4/26

 

Salem, Amr, “Iran cuts off gas supplies to Iraq,” Iraqi News, 3/2/26

- “Iran increases gas supplies to Iraq,” Iraqi News, 3/15/26

 

Al-Samarraie, Jawad, “Deadly strike on Al Qa’im border crossing,” Iraqi News, 4/4/26

 

Shafaq News, “Airstrike targets Popular Mobilization Forces headquarters in Sabah al-Din,” 4/4/26

- “Popular Mobilization Forces: A drone targeted the 31st Brigade in al-Siniya, Salah al-Din,” 4/4/26

- “Six drones target the Buzurgan oil field in Maysan,” 4/4/26