Iraq to Lose 1.7 Million Barrels of Oil Export If Hormuz Is Shut

Iraq will lose the capacity to export 1.7 million barrels of crude a day if Iran blocks the Strait of Hormuz, the transit point for about two thirds of its production, an Oil Ministry spokesman said.

“Iraq will have to depend on the northern route from where it can export 450,000 barrels a day through Turkey’s port of Ceyhan on the Mediterranean,” Asim Jihad said in a telephone interview in Baghdad. “Crude prices are estimated to rise significantly if Iran implements its threats to close Hormuz, and Iraq can compensate for some of its losses if its export route from the south is closed,” he said.