Warning: Iraq could lose part of its oil markets if the Strait of Hormuz remains closed for an extended period.
Warning: Iraq could lose part of its oil markets if the Strait of Hormuz remains closed for an extended period.
2026-05-12
Shafaq News – Baghdad
Economic expert Mohammed Al-Hassani warned on Tuesday of the repercussions of any prolonged closure of the Strait of Hormuz on Iraqi oil exports, stressing that Baghdad could face a partial loss of its traditional markets in Asia even after navigation returns to normal.
Al-Hassani told Shafaq News Agency that “Iraq relies heavily on Asian markets, especially China, India and South Korea, to sell the bulk of its oil exports, and any prolonged disruption or cessation of supplies will push these countries to seek stable and rapid alternatives.”
He added that “when Asian refineries secure their needs from other countries such as Saudi Arabia, Russia, the United States, or the UAE, returning to the previous reliance on Iraqi oil will not be easy or immediate, because markets move according to interests and stability, not just relations.”
Al-Hassani explained that “Iraq may be forced, after resuming full exports, to offer price discounts or trade facilities in order to regain its market share, which means additional pressure on oil revenues and the general budget.”
He pointed out that “the danger is not limited to the lockdown period only, but extends beyond the return to normal conditions, due to the changing global supply map and the tendency of importing countries to diversify energy sources to reduce geopolitical risks.”
The economist concluded by saying that “Iraqi crude still has an important competitive advantage in Asian markets, but continued tensions in the region may push buyers to gradually reduce their dependence on Middle Eastern oil.”
shafaq.com
