Iraq turns to Iran to keep oil flowing through Hormuz
Shafaq News- Baghdad
Iraq and Pakistan have reached separate arrangements with Iran to move crude oil and liquefied natural gas through the Gulf, according to sources cited by Reuters, as regional conflict continues to disrupt global energy flows.
An Iraqi oil ministry official familiar with the talks told Reuters that Baghdad is seeking Iranian approval to increase tanker traffic through the Strait of Hormuz in an effort to protect oil revenues that make up nearly 95% of Iraq’s state budget. “Iraq is a close ally of Iran, and any deterioration in Iraq’s economy would also damage Iran’s economic interests in the country,” the official said.
A second Iraqi oil ministry source and a shipping industry source also confirmed continued coordination with Tehran. Reuters reported that Iraq secured the passage of two supertankers carrying around two million barrels of crude each through Hormuz on Sunday.
Pakistan, meanwhile, arranged the transit of two Qatari LNG cargoes under a separate understanding with Iran to help meet rising summer electricity demand.
According to the report, neither Iraq nor Pakistan made direct payments to Iran or the Islamic Revolutionary Guard Corps (IRGC) for the transit arrangements.
The agreements come as the US-Israeli war with Iran and the US blockade on Iranian ports continue to strain exports from a region that typically supplies around one-fifth of the world’s crude oil and liquefied natural gas.
