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Iraq Oil Exports: New Route Opens Amid Strait Blockade
11 Aug
Summary
- Iraq and Turkey signed a one-year deal for oil transit via ITP.
- The agreement allows for 750,000 bpd, aiming to bypass the Hormuz Strait.
- Shipments will now target European and American markets directly.
Iraq's oil exports face a critical juncture with a new one-year interim deal signed on August 1, 2026, between Baghdad and Ankara. This agreement allows Iraq to move its crude through the Iraq-Turkey Pipeline (ITP) corridor, a vital alternative to the Strait of Hormuz. The deal targets a transit of 750,000 barrels per day, a significant increase from current levels, though still below the pipeline's total capacity.
Following the agreement, tanker operations quickly resumed. The Valpiave vessel loaded over 600,000 barrels of crude on August 3, 2026. These shipments are strategically directed towards European and American markets. This shift aims to replace oil supplies affected by the Strait of Hormuz blockade and address the broader scarcity of available crude in Western markets.
