Iraq approves three-month plan to export oil through local, foreign firms

Bazerkan oil field in the city of Maysan, south of the capital Baghdad, Iraq. Photo: Shutterstock Baghdad (IraqiNews.com) – The Iraqi cabinet approved on Wednesday a three-month plan to export crude oil with the help of specialized local and foreign corporations through different outlets starting September 1, 2026. The short-term plan comes in response to shipping difficulties in the Strait of Hormuz caused by the military conflict between Iran and the United States. Iraq is extending its transit network to include alternate overland and pipeline routes through Turkey and Syria to maintain oil supplies to global markets. This emergency action seeks to safeguard the primary source of the country’s national income, as Iraq is heavily dependent on its southern export outlets located on the Arabian Gulf. Prime Minister Ali al-Zaidi’s cabinet approved oil purchases at a lower price compared to the official rate of the Iraqi state-owned company responsible for marketing the country’s oil (SOMO) or the federal budget price, with an annual 30 percent discount. The Iraqi Oil Ministry will develop new transportation routes and renew current contracts to increase pipeline flow capacity across neighboring nations. The government has yet to officially disclose the specific names of the selected local and foreign enterprises, as well as the exact allocations per route.