Iraq’s oil exports stalled despite Iran lifting Hormuz restrictions

Iraq remains unable to fully resume oil exports even after Iran confirmed that Iraqi shipments would be exempt from disruptions and fees in the Strait of Hormuz, as reported by The New Arab staff and agencies on April 8th.

While the announcement raised hopes of a return to normal operations, structural constraints continue to impede recovery.

Iraq lacks a fleet of large tankers and depends on foreign vessels arranged by buyers to transport crude. This reliance has become a major obstacle amid regional tensions and rising insurance costs.

In early April 2026, Iraq’s oil exports dropped from over 3.4 million barrels per day (bpd) to around 800,000–1,000,000 bpd, with southern exports nearly halted. Only 250,000–300,000 bpd are moving through northern routes via Turkey’s Ceyhan port, while small-scale trucking to Jordan and Syria fails to make up the shortfall.

“The statement by Iran is encouraging, but it doesn’t solve Iraq’s fundamental logistical issues,” said Shwan Zulal, managing partner at Carduchi Consulting. “Iraq does not have its own fleet capable of lifting large cargoes. The fact that one tanker made the trip over the weekend is a start, but more will be needed.”

Asim Jihad, an Iraqi energy expert, emphasized that political assurances alone cannot restore exports. “Shipping and insurance companies make decisions based on real risk, not announcements. High insurance premiums and regional instability remain the main barriers,” he said.

The State Organisation for Marketing of Oil (SOMO) is prepared to act. A document reviewed by Reuters shows clients are being asked to submit oil lifting schedules within 24 hours, while all southern terminals, including Basrah, remain fully operational. However, Iraq’s domestic tanker capacity is limited, with the Iraqi Oil Tankers Company lacking supertankers for large crude cargoes.

Analysts warn that without more tankers and a reduction in risk premiums, Iraq’s return to full export capacity will remain uncertain.

The New Arab staff and agencies, Maghrebi.org