Iraq has agreed with the US to allow oil exports through Hormuz, minister says

Iraq and the United States agreed on a route for Iraqi oil exports through the Strait of Hormuz. The shipments would use a shipping lane near Oman, helping Iraq keep oil moving despite wartime disruption.

Iraqi Foreign Minister Fuad Hussein described the arrangement in an interview with Al Jazeera on November 8, 2026. The agreement provides a specific maritime path for Iraqi oil shipments through Hormuz, rather than ending exports altogether. That matters because the strait is a crucial passage for regional oil shipments.

Hussein said Iraq’s losses from the Iran war and export disruptions had reached $60 billion. The source does not give a start date, shipment volume, or details about who will operate the lane. For now, the agreement signals continued exports, but its practical impact depends on implementation and security.

The Strait of Hormuz is a narrow sea passage between Iran and Oman. It links the Persian Gulf with the Gulf of Oman and wider ocean routes, making it vital for oil shipping.

In this agreement, Iraq’s oil would use a shipping lane near Oman to pass through Hormuz. That route matters because ships need a navigable, agreed path through this strategically sensitive waterway. It can help Iraqi exports continue despite wartime disruption.

Iraqi Foreign Minister Fuad Hussein said Iraq and the United States reached understandings on this arrangement. He said disruptions and war losses had reached $60 billion. The practical result is a possible outlet for Iraqi oil, but the article does not provide the lane’s exact location, capacity, or start date. Those missing details will determine how much oil can move, and how reliably.

About one-fifth of the world’s oil supply normally passes through the Strait of Hormuz. Roughly 20 million barrels move through this narrow route daily, making it vital to global energy markets. Most shipments travel by tanker between Gulf producers and international buyers.

Iraq depends heavily on oil exports for government income. Much of its seaborne oil leaves through the Gulf, making safe access to Hormuz especially important. Foreign Minister Fuad Hussein said Iraq’s losses from the Iran war and export disruptions had reached $60 billion.

On 8 November 2026, Hussein said Iraq had reached understandings with the United States. These would allow Iraqi oil exports through Hormuz using a shipping lane near Oman. The arrangement could help restore shipments, but it also shows Iraq’s exposure to regional conflict and blocked sea routes. Any prolonged disruption could again threaten export earnings and global oil supplies.

Oil exports are a major source of Iraq’s government income. When shipments are blocked, the state receives less money from sales and related export payments. That can widen budget gaps and leave less for salaries, electricity, healthcare, schools, and reconstruction.

The article reports that Foreign Minister Fuad Hussein put Iraq’s losses from the Iran war and export disruptions at $60 billion. If oil cannot move through Hormuz, fewer barrels reach buyers, reducing export earnings and potentially forcing emergency borrowing or spending cuts. Lower government income can also weaken the wider economy, because public wages and contracts support businesses and households.

Iraq says it has reached an understanding with the United States to move oil through a shipping lane near Oman. The arrangement could protect exports, but Washington also asked Iraq to close all but two crossings with Iran. Continued disruption would make public-service planning harder, especially if high losses persist.

The US Treasury is asking Iraq to close most crossings with Iran to increase economic pressure on Tehran. Fewer open crossings would limit legal trade, payments, and movement of goods between the countries.

According to Foreign Minister Fuad Hussein, Washington requested that Iraq keep only two crossings open. One exception is in Iraq’s Kurdistan region. Restricting access can reduce Iran’s trade income and make supplies harder or costlier to move, weakening resources available to its government.

Iraq reports severe losses from the Iran war and disrupted oil exports, which Hussein valued at $60 billion. Iraq also reached understandings with the US for oil shipments through Hormuz, using a lane near Oman. That arrangement may protect exports while Baghdad tightens trade with Iran; the article gives no closure timetable.

If tankers could not use Hormuz, Iraq would need land pipelines, ports outside the Gulf, or smaller overland shipments. These options bypass the chokepoint but usually carry less oil, cost more, and require agreements with neighboring countries.

Iraq’s northern Kirkuk-Ceyhan pipeline offers one concrete alternative. It moves crude overland to Turkey’s Mediterranean port of Ceyhan, avoiding Hormuz entirely. However, security damage, capacity limits, and political disputes have interrupted this route before.

The source says Iraq and the United States instead agreed to use a shipping lane near Oman. Iraq’s losses from the war and export disruptions had reached $60 billion. Alternative pipelines and ports could improve resilience, but they could not quickly replace all Gulf export capacity.

A maritime chokepoint is a narrow passage connecting wider seas. If conflict or restrictions block it, fuel deliveries can slow. Buyers then compete for fewer supplies, raising prices worldwide.

Hormuz matters because it links the Gulf’s oil exporters with global shipping routes. Iraq’s foreign minister said Iraq secured US understandings to send oil through Hormuz on a lane near Oman. Any interruption could delay cargoes, increase insurance and transport costs, and pressure factories, airlines, and households far away.

The article shows these effects already extend beyond shipping. Hussein estimated Iraq’s losses from the war and export disruptions at $60 billion. The agreement may keep Iraqi oil moving, but relying on one narrow route leaves economies exposed.