On April 4, 2026, it was reported that the Iranian military announced that Iraq, a major oil producer, will be exempt from shipping restrictions in the Strait of Hormuz. This decision could significantly impact global oil supplies.
The Iranian military spokesman stated in an Arabic video released by the state-run Islamic Republic News Agency, “Brotherly Iraq is exempt from any restrictions we have imposed on the Strait of Hormuz.”
This exemption could potentially allow Iraq to export as much as 3 million barrels of oil per day. However, an official from Iraq indicated that the effectiveness of this exemption would depend on whether shipping companies are willing to take the risk of entering the Strait to collect oil.
It is still unclear whether the exemption applies to all Iraqi oil or just specific tankers, and details regarding enforcement remain vague.
Despite ongoing conflicts and increased threats from the US, traffic through the crucial strait has slightly increased. Some Asian countries are negotiating for safe passage. Notably, a French container ship recently crossed the strait—a first for a Western European vessel—and a Japanese-owned LNG tanker also successfully passed through.
However, the total number of transits is still just a small fraction of what it was before the war, when about 20% of the world's oil and liquefied natural gas traveled through the strait.
In the early weeks of the ongoing war, Iraq and other major oil producers in the Persian Gulf had to reduce crude oil output drastically as the primary export route was cut off and storage facilities became full.
In March, Iraqi oil exports plummeted by approximately 97%, averaging only 99,000 barrels per day, due to decreased production and restrictions on overseas shipments, which were limited to a pipeline system that runs through Turkey to the Mediterranean port of Ceyhan.
Iran easing restrictions in the Strait of Hormuz gives Iraq a chance to restart some seaborne oil shipments, but challenges remain, including uncertainty over when and how much Iraq’s oil fields can increase production.
Additionally, it is not clear how much tanker capacity will be available right away for loading and transporting Iraqi crude from Persian Gulf ports following the shipping disruptions that have occurred over the weeks.
Iraq is the second-largest oil producer in OPEC, following Saudi Arabia.
The Iranian statement highlighted the relationship with “brotherly” Iraq, distinguishing it from “hostile” nations that Iran claims have restricted access to the strait. The military spokesman expressed gratitude to the Iraqi people for their support throughout the war in Arabic, rather than Persian.