Iraq’s main oil export route through the Strait of Hormuz remains closed due to the U.S.-Iran conflict. This is having a deleterious effect upon Iraq’s petroleum industry and economy.
In April Iraq only exported an average of 310,000 barrels oil per day. That was down from 600,000 barrels in March. In February before the war Iraq sold 3.567 million and 3.471 million in January.
Revenues plummeted as a result. In February Iraq earned $6.815 billion. That went down to $1.957 billion in March and then $1.02 billion in April.
In comparison Baghdad spent $6.36 billion in January. That included $4.48 billion on public salaries, $1.21 billion on pensions and $349.6 million on welfare. It will now have to borrow huge sums from banks to cover these costs.
It doesn’t appear like any relief will come anytime soon. There have been a series of reports of ships docking in Basra and filling up with oil or waiting to do so. Iraq Oil Report found that one tanker was stopped by Iran trying to leave the Strait of Hormuz. Since then three more ships have been loaded with petroleum. One actually was able to exit while two more were struck by Tehran.
Exports through Turkey have been inadequate. There were early reports that 250,000 barrels a day were passing through the pipeline but Iraq Oil Report said that only 177,000 barrels a day were going out in April.
The Oil Ministry also started moving southern oil to the north but that has gone to refineries rather than foreign sales.
Iraq is the most oil dependent country in the world. As long as the Strait remains blocked its economy will be in turmoil and the government will struggle to meet its obligations. With the summer months approaching and the heat that comes with it there could be widespread civil unrest.
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 |
0.3 |
$1.02 |
FOOTNOTES
Iraq Oil Report, "Iraqi oil exports stagnate at two-decade lows as wartime restrictions persist,” 5/5/26
Salem, Amr, “Iraq’s financial revenues hit $6.51 billion in January,” Iraqi News, 4/27/26
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