Iraq ramps up Turkey oil exports as Hormuz crisis hits Gulf shipments

Baghdad (IraqiNews.com) – As regional violence and interruptions in the Strait of Hormuz continue to threaten Gulf energy supplies, Iraq is expediting plans to drastically expand petroleum exports via Turkey’s Mediterranean port of Ceyhan. A proposal to increase exports via the Iraq-Turkey pipeline from 220,000 barrels per day to 770,000 barrels per day within two and a half months was authorized by the Iraqi cabinet on Tuesday, far exceeding an earlier goal of 500,000 barrels per day. Iraq is under increasing strain as a result of the regional conflict between Iran, Israel, and the United States, which has interrupted Gulf shipping lanes and decreased the ability of various producers to export oil. Following a deadly Iranian missile and drone strike on Kuwait Airport that killed one person and damaged infrastructure, security concerns increased, and Arab governments denounced the escalation. The Hormuz closure have highlighted the dangers of heavily depending on Gulf export routes for Iraq, whose economy is mostly dependent on oil earnings. Following an agreement with the Kurdistan Regional Government, Baghdad began exports via the Ceyhan pipeline in March, providing a crucial alternate route to international markets via Turkey. The pipeline gives Baghdad a strategic export alternative in the face of growing volatility in regional waterways by enabling Iraqi petroleum from Kurdistan and Kirkuk fields to completely avoid the Gulf. In an effort to lessen reliance on the Strait of Hormuz and protect the economy from any interruptions, Iraqi authorities have also been investigating other overland and pipeline routes via Syria and Jordan. The most recent move, according to analysts, demonstrates how regional energy policies are being reshaped by Gulf security issues, with Iraq acting quickly to diversify export routes as marine commerce is increasingly threatened by war. The post Iraq ramps up Turkey oil exports as Hormuz crisis hits Gulf shipments appeared first on Iraqi News.