Iraq Faces Substantial Oil Export Losses After Strait Closure

A recent report from a specialized economic observatory indicates that Iraq has incurred losses estimated at approximately 350 million barrels of oil exports, equivalent to nearly $37.7 billion, since the closure of the Strait of Hormuz. The report emphasized the urgent need to accelerate the implementation of the "New Levant" project as a vital strategic option to secure alternative export outlets and reduce reliance on vulnerable sea lanes. The observatory explained that, prior to the halt in movement through the Strait of Hormuz on February 28, Iraq was exporting between 103 and 107 million barrels of crude oil monthly. It further clarified that this closure, resulting from regional tensions, led to a significant decline in export volumes. Export losses recorded for March reached 84,395,049 barrels, for April they amounted to 93,115,870 barrels, and for May, they stood at 92,801,000 barrels. Estimates for the current month of June indicate approximately 79,600,000 barrels. The report concluded that Iraq's export gap during the mentioned period is estimated at around 350 million barrels, representing lost export opportunities valued at $37.7 billion, based on the average oil prices during that time. The observatory affirmed that the "New Levant" project is an utmost strategic necessity to ensure the stability of Iraqi oil exports and provide reliable alternatives away from geopolitical threats affecting waterways, especially given that the Iraqi economy relies heavily on oil revenues by approximately 90%.