In April Iraq was hoping that it could begin shipping oil through the Strait of Hormuz again. That collapsed in May and so did its exports.
In May Iraq exported an average of 285,000 barrels a day. That was down from 329,000 barrels in April and 600,000 barrels in March. In comparison, before the Iran War the country was selling over 3 million barrels a day in January and February.
In April the Oil Ministry was optimistic. That month four tankers successfully entered and exited the Strait of Hormuz. Since then only one tanker has made the trip. This shows that the country’s economic crisis is only getting worse as it is the most oil dependent nation in the world.
The government is desperately looking for new routes. The Oil Ministry said it wanted to increase exports from 220,000 barrels a day to 770,000 barrels day in three months to Turkey. It also plans to truck oil to Basra. There are logistical and infrastructure problems in the way.
Iraqi News for one reported that red tape is holding up thousands of tankers meant to take Iraqi fuel for sale to Syria. The drivers need to get special clearances for the trip and bureaucracy is holding that up. That would only get worse if more trucks were contracted to carry oil as well.
Next month the treaty to use the Turkish pipeline is due to expire. Ankara wants a range of concessions including increasing the transit fees, to have the fees be paid even when the pipeline is not being used to cover maintenance, to allow Turkey to invest in oil and electricity in Iraq, deals over water rights, and to negotiate the $1.47 billion Turkey has owed Iraq since 2023 when it lost an arbitration case over the pipeline. Since the Zaidi government has just come into office it could be expecting too much to have all of these issues resolved by July 27 when the treaty runs out. What will happen the day after is anyone’s guess but it could mean another disastrous turn for Iraq’s economy.
Federal Oil Exports, Prices, Revenues 2021-2024
|
Month |
Avg Export (Mil) |
Earnings (Bil) |
|
Jan 2023 |
3.266 |
$7.663 |
|
Feb |
3.184 |
$7.081 |
|
Mar |
3.255 |
$7.506 |
|
Apr |
3.288 |
$7.699 |
|
May |
3.305 |
$7.325 |
|
Jun |
3.335 |
$7.115 |
|
Jul |
3.444 |
$8.294 |
|
Aug |
3.423 |
$8.998 |
|
Sep |
3.438 |
$9.422 |
|
Oct |
3.534 |
$9.594 |
|
Nov |
3.433 |
$8.482 |
|
Dec |
3.486 |
$8.311 |
|
2023 Avg |
3.365 |
$8.124 |
|
Jan 2024 |
3.339 |
$8.026 |
|
Feb |
3.434 |
$7.96 |
|
Mar |
3.423 |
$8.65 |
|
Apr |
3.413 |
$8.75 |
|
May |
3.359 |
$8.14 |
|
Jun |
3.41 |
$8.25 |
|
Jul |
3.486 |
$9.08 |
|
Aug |
3.414 |
$8.49 |
|
Sep |
3.31 |
$7.11 |
|
Oct |
3.327 |
$7.47 |
|
Nov |
3.296 |
$7.01 |
|
Dec |
3.259 |
$7.15 |
|
2024 Avg |
3.372 |
$8.00 |
|
Jan 2025 |
3.298 |
$7.47 |
|
Feb |
3.398 |
$6.7 |
|
Mar |
3.441 |
$7.717 |
|
Apr |
3.365 |
$6.738 |
|
May |
3.278 |
$6.362 |
|
Jun |
3.296 |
$6.698 |
|
Jul |
3.379 |
$7.185 |
|
Aug |
3.381 |
$7.160 |
|
Sep |
3.405 |
$6.962 |
|
Oct |
3.578 |
$7.031 |
|
Nov |
3.553 |
$6.595 |
|
Dec |
3.473 |
$6.388 |
|
2025 Avg |
3.404 |
$6.917 |
|
Jan 2026 |
3.471 |
$6.485 |
|
Feb |
3.567 |
$6.815 |
|
Mar |
0.6 |
$1.957 |
|
Apr |
0.329 |
$1.087 |
|
May |
0.285 |
$0.915 |
FOOTNOTES
Iraq Oil Report, “Iraq seeks backup export options as Basra loadings falter,” 6/6/26
- “Iraq’s northern exports at risk with imminent expiration of Turkey treaty,” 6/3/26
Iraqi News, “Iraq ramps up Turkey oil exports as Hormuz crisis hits Gulf shipments,” 6/3/26
Al-Samarraie, Jawad, “Bureaucratic red tape halts Iraqi oil tankers heading to Syria,” Iraqi News, 5/31/26
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