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Iraq oil exports recover to 3.5M bpd as Hormuz transit secured
October shipments rose from September's 2.65M bpd after Baghdad reached understandings with US on Oman shipping lane.
Iraq oil exports recovered to approximately 3.5 million barrels per day in October 2026, up from 2.65 million bpd in September, according to Iraqi energy officials cited by Al-Monitor. The recovery followed understandings reached with the United States to allow Iraqi crude shipments through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein stated in an interview with Al Jazeera on 8 November 2026.
Hormuz transit arrangement#
The understandings permit Iraqi oil exports to transit the Strait of Hormuz using a corridor near Oman. Hussein stated that Iraq's losses from the Iran conflict and disruptions to oil exports had reached 60 billion dollars. The arrangement addresses export constraints that contributed to the September decline in shipments.
Export volumes and recovery#
October exports of 3.5 million barrels per day represent an increase of approximately 850,000 bpd from the September level of 2.65 million bpd. Iraqi energy officials provided the figures to Al-Monitor. The September drop marked a significant contraction in Iraq's export capacity before the October rebound.
Saudi pipeline revival under consideration#
Saudi Arabia has given preliminary backing to reviving the 1,568 kilometre Iraq-Saudi crude pipeline, conditional on Baghdad funding part of a new route, sources told Shafaq News and reported by Oil and Gas Middle East. The pipeline project is positioned as a measure to reduce Iraq's export dependency on Hormuz transit. No timeline, cost estimate or funding split was disclosed in the available reports.
Disruption costs and substitution routes#
The 60 billion dollar loss figure cited by Hussein encompasses both conflict-related impacts and export disruptions. The Oman shipping lane arrangement provides an alternative routing for Iraqi crude through Hormuz. The Saudi pipeline, if revived, would offer a land-based export corridor bypassing the strait entirely, though no construction start date or capacity target has been announced.
Sources2 sources across 2 domains
- al-monitor.comAl-MonitorIraq oil exports recovered to 3.5M bpd in October from 2.65M bpd in September; understandings reached with US for Hormuz transit via Oman lane; 60 billion dollar losses cited by Foreign Minister Fuad Hussein
- oilandgasmiddleeast.comOil and Gas Middle EastSaudi Arabia gave preliminary backing to reviving 1,568km Iraq-Saudi pipeline conditional on Baghdad funding part of new route
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MENA Trade Monitor is published by Arabian Media Network. Pieces are produced by the Chokepoint Watch with AI-assisted synthesis of the cited sources and automated verification against the network's editorial policy. Every piece carries a desk rather than a reporter. Corrections are recorded on the piece and on the corrections page.
Transits, closures, advisories, war risk premia and rerouting cost for Hormuz, Bab el-Mandeb and Suez. Same day, same shape, always numbers.