Iraq oil exports rebound to highest level since Strait of Hormuz closure

· Business IRQIRNTUR

Iraq's crude exports reached two million barrels per day in August, the highest rate since the Strait of Hormuz blockade began, offering relief after shipments collapsed by as much as 97% earlier this year.

The recovery follows severe fiscal strain. With oil generating over 90% of state revenue, monthly income fell to between $2 billion and $2.3 billion in May and June, forcing the central bank to inject roughly $32.8 billion into domestic markets to cover public-sector wages. The government says it holds $83 billion in reserves, enough to sustain salaries for up to 11 months.

Prime Minister Ali al-Zaidi has sought Iranian permission for Iraqi tankers to transit the strait, while extending oil agreements with Turkey and planning a new Basra-to-Fishkhabor pipeline via a Chevron-led consortium to reduce reliance on the contested waterway.

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