Iraq in talks with Iran on mechanism to facilitate oil exports, minister says
Iraq is in talks with Iran on a mechanism to facilitate its oil exports, Iraqi Oil Minister Basim Mohammed Khudair said on Saturday.
The talks come amid the closure of the Strait of Hormuz, which has affected Iraq's oil exports. Khudair said discussions had been held with Iran to allow Iraqi oil tankers to pass through the strait, but that the agreements had not yet been put into operation, Fars news agency reported.
"Talks have been held with Iran to allow Iraq's oil exports, but these agreements have not yet been put into operation," Khudair told reporters.
He did not provide details of the proposed mechanism, including the suggested route, potential export volumes or its timeline.
The Strait of Hormuz, one of the world's most important energy transit routes, has been at the center of contention between Iran and the United States since the latter waged a war of aggression with Israel against the Islamic Republic in late February.
In response, Iran closed off the strait and began talks with Oman to establish a joint mechanism for shipping arrangements.
Khudair said Iraq is currently producing about 2.7 million barrels per day of oil, about half of which is exported.
He said Iraq's oil export ceiling this month is between 1.5 million and 1.75 million barrels per day.
Iraq's oil exports have fallen by 75%, Khudair said.