Iraq’s oil exports have fallen by 75 percent because of the blockade of the Strait of Hormuz, Oil Minister Basem Mohammed Khudair said. In a report published on August 8, 2026, he linked the steep decline to the war involving the United States, Israel and Iran. Before the war began, Iraq exported about 3.4 million barrels of oil per day through the strait.

Speaking at a news conference, Khudair said Iraq is currently producing about 2.7 million barrels of oil a day, with roughly 1.5 million to 1.7 million barrels exported daily. He said Iraq needs to create alternative export routes in the future and is focusing on diversifying export infrastructure and routes.

Khudair said Iraq has discussed with Iran the possibility of enabling Iraqi oil exports through the Strait of Hormuz, but no practical initiative has yet begun. The Iraqi government also opposed any attacks on oil companies and agreed to compensate companies if they are damaged in attacks. The source notes that disruption on the major oil and gas transit route could have significant effects on international energy markets.