Iraqi Oil Losses Hit $60B as Baghdad Agrees to Hormuz Shipping Lane

Iraqi oil exports have cost the country $60 billion in lost revenue since the start of the Iran war, according to Foreign Minister Fuad Hussein. In an interview with Al Jazeera published this week, Hussein stated that the financial hit stems from disruptions to shipping routes. He confirmed that Iraq has reached a deal with the United States to allow oil to flow through the Strait of Hormuz. The agreement designates a specific shipping lane near Oman for Iraqi vessels.

Output figures show a sharp rebound in the past month. Iraqi energy officials reported that exports climbed to roughly 3.5 million barrels per day in October. This represents a significant increase from the 2.65 million barrels per day shipped in September. The recovery follows a period of severe restrictions that impacted global supply chains.

Hussein also outlined new economic measures requested by Washington. The US Treasury Department has asked Baghdad to close most of its border crossings with Iran. Only two points of entry will remain open under this arrangement. One of the active crossings is located in the Kurdistan Region. Iraq has already closed several border posts in recent weeks, including the Al-Sheeb crossing in the south. Officials cited security and infrastructure needs for those closures, though Tehran complained that Baghdad did not provide advance notice.

Vessel losses in the region have continued to mount despite the new understanding. Iran’s Revolutionary Guards reported on Wednesday that four oil tankers were destroyed after hitting naval mines. The vessels were attempting to use a prohibited route south of the main waterway. Two other ships were seized in the same operation. The following day, the IRGC announced that two more tankers and a tugboat caught fire. Those incidents occurred after the ships tried to use unauthorized routes. On Sunday, the Iranian navy reported that another tanker hit a mine east of the strait and caught fire.