Iraq Increases Oil Exports Through Strait of Hormuz | August 2026 – News and Statistics

Sep 5, 2026

Iraq, the second-largest producer in OPEC, significantly increased its crude oil exports through the Strait of Hormuz in August, according to data from two Iraqi energy officials and vessel-tracking firms. The country’s exports rose to approximately 2.34 million barrels per day (bpd) from 1.35 million bpd in July, with tracking firms estimating shipments between 2.2 million and 2.3 million bpd. Although these volumes remain below the pre-war level of over 3.5 million bpd, the increase is expected to benefit refiners in India and China that are equipped to process Iraq’s heavier, higher-sulfur crude.

This development follows reports from Iranian state media that Tehran permitted several oil tankers carrying Iraqi crude to transit the Strait of Hormuz, easing Baghdad’s export bottleneck. While it remains unclear if all Iraqi tankers are allowed passage, even partial permission provides relief for Iraq, which has suffered from reduced oil revenues due to the chokepoint’s de facto closure. The blockage had forced Iraq to cut production, as its Basrah exports depend on this vital route.

In addition to the Iranian corridor, Iraq has offered substantial discounts to attract buyers, according to analysts. A senior analyst at Sparta Commodities noted that heavy discounts incentivized buyers to secure shipping options for Basrah crude. Consequently, Chinese and Indian refiners have received cargoes in recent weeks and have chartered tankers for additional volumes. Chinese refiners alone are estimated to have purchased at least 16 million barrels of Basrah crude for September delivery.