Oil Flows Resume in the Strait of Hormuz: Iraqi Crude Returns to Global Markets

The Strait of Hormuz, one of the world’s most strategic energy transit routes, is witnessing a renewed surge in oil traffic. A recent exemption granted by Iran has cleared the way for Iraqi crude shipments to pass through the strait without restrictions.

Iraq’s State Organization for Marketing of Oil (SOMO) confirmed that its shipments are now exempt from any potential limitations. Following this announcement, Asian refiners and traders were urged to prepare loading schedules and submit detailed plans, including vessel information and requested volumes, within a tight timeframe.

This development not only boosts commercial activity but also signals a degree of stabilization in regional energy flows. After a period of heightened geopolitical tensions that disrupted shipments, the resumption of Iraqi exports could help ease pressure on global oil supply.

According to SOMO, all export terminals, including those in Basra, are fully operational and ready to handle shipments at maximum capacity. While operations are running smoothly, it remains unclear whether the exemption applies to all Iraqi oil exports or only to specific vessels.

Initial reports indicate that shipments have already resumed. A tanker carrying approximately one million barrels of Iraqi crude successfully transited the strait over the weekend, demonstrating the immediate impact of the policy shift.

However, Asian buyers are still seeking clarity on whether Iraq will deploy its own tanker fleet and whether additional security measures will be implemented in the region. These factors remain crucial for long-term planning and risk assessment.

Recent data shows a noticeable increase in maritime traffic through the Strait of Hormuz over the past week, with the seven-day average reaching its highest level since the onset of regional conflict. This uptick suggests that global energy supply chains may be entering a phase of recovery.